Last resort for South Africa’s middle class

• Middle-class households are emerging as the biggest withdrawers of two-pot retirement savings, taking the money to cover their basic needs as financial pressures mount.
• The rules of the system itself, which requires a minimum of R2,000 to be held in savings, are the main reason for this trend, with lower-income households unable to withdraw due to insufficient savings.
• The data shows a gap between people's intentions to use their two-pot savings in a real emergency and what actually happens, with many turning to retirement savings to survive due to rising interest rates, inflation, and existing debt repayments.