Old Mutual expects more than R14bn in two-pot withdrawals as even the wealthy dip in

Old Mutual expects its clients to withdraw a total of R14.2 billion from their retirement savings when the so-called two-pot retirement system comes into effect on 1 September.

Gontse Tsatsi, head of retail distribution at Old Mutual Investment Group (OMIG), says the group expects clients to withdraw about R7.9 billion from retail retirement products such as retirement annuities (RAs) and preservation funds. They are also expected to withdraw about R6.3 billion from occupational schemes, which include provident, pension and preservation funds.

While these sums are nothing to sneeze at, the group's funds under management stood at R1.3 trillion at the end of 2023. But, over the past two years or so, it's also been forced to change its expectations regarding who will dip in, now expecting more of its middle-class and wealthier clients to do so amid general economic pressure.