A surge in two-pot retirement fund withdrawals indicates that many South African consumers are still grappling with financial pressures.
Financial services company Sanlam reported that approximately 60,000 withdrawal applications were submitted on the first day of the new financial year in March.
The company shared these figures while releasing its 2025 financial results, which underscore the persistent strain on household finances.
Despite these challenges, Sanlam noted that South Africans continue to prioritise financial protection products, including insurance. The company highlighted that the country maintains one of the highest levels of insurance penetration globally.
However, the pressure on consumers remains significant. Sanlam’s Chief Financial Officer observed, “Many consumers are clearly still feeling the financial strain.”
This trend points to ongoing challenges for households as they balance day-to-day expenses with long-term financial planning, especially in the context of rising living costs and economic uncertainty.
