Alexforbes pays out R4.6bn from 2-pot system

Financial services group Alexforbes has paid out R4.6 billion to pension fund members who applied to withdraw funds from the savings pot of their pension funds under the two-pot retirement system.

- Ina Opperman

Dawie de Villiers, CEO of Alexforbes, announced the two-pot retirement system figures with the company's financial results for the six months ended 30 September.

"The two-pot retirement system represents the most significant change in the history of South Africa's retirement funding landscape, with ripple effects now and into the future," said De Villiers.

"It immediately provides limited access to emergency savings and is projected to improve long-term retirement outcomes by up to 2.5 times current levels, resulting from the impact of compulsory preservation."

De Villiers said since 1 September, when the two-pot retirement system came into effect, Alexforbes received claims from 350,000 members, approximately 32% of its entire membership base, to the value of about R6.5 billion before tax.

So far, 340,000 claims have been paid to the value of about R4.6 billion after tax and 99% of claims have been paid within service level arrangements of 20 business days.

De Villiers said the volume of claims processed in two months was more than two years of normal claims volume.