Alexforbes sees surge in savings pot claims

Since the start of the new tax year on 1 March 2025, Alexforbes has been witnessing a second wave of interest from retirement fund members in checking their balances and submitting savings pot claims. Vickie Lange, Head of Best Practice at Alexforbes, shared in an interview with CNBC Africa that they had anticipated this increase in claims at the beginning of the tax year. The initial surge saw over 30,000 claims within the first four days of March, totaling to about 68,000 claims by mid-September. Despite the high volume of claims, Lange mentioned that a significant portion of the membership is actively choosing not to claim their savings pots. She pointed out that out of about a million logins to the member portal in March, only 68,000 claims were made. This indicates that the majority of members are reconsidering withdrawing their funds and are keeping them invested for potential emergencies. When asked about the percentage of members not following through with claims, Lange stated that more than 95% of the total membership had not submitted claims so far in the new tax year. However, she acknowledged that it is still early in the year, and they expect claims to continue throughout the year, with potential changes in trends and patterns. Regarding the exploration of policy adjustments allowing retrenched members limited access to their retirement pots, Lange highlighted that discussions are ongoing among industry stakeholders. The National Treasury is considering the possibility of providing limited access to retirement pots in case of retrenchment, with strict requirements likely to be in place. Lange emphasized the importance of the savings pot for financial emergencies, including retrenchment, as members can access their vested pots and investment growth in full in such situations. She urged members to think carefully before withdrawing funds for other reasons, as the savings pot could be crucial in the event of future retrenchment. When questioned about the age groups of those inquiring for claims, Lange mentioned that fund members between ages 32 to 50 make up the majority of claimants due to the demographics of fund membership. In conclusion, the second wave of interest in savings pot claims at Alexforbes reflects a mix of proactive financial planning and cautious decision-making among retirement fund members. As the year progresses, it will be interesting to see how member behavior and trends evolve in response to changing financial circumstances and policy adjustments.