Newsletter • Quarter 2 • 2025
Pay back your two-pot withdrawals
You should only withdraw from your savings pot if you have a financial emergency – such as having to pay for urgent medical care.
Before you make a withdrawal from your savings pot
- Always talk to a certified financial planner to help you make the best choice.
- Only withdraw the money you really need — not a rand more.
- Withdrawing cash now means you will have less money when you retire.
- By taking money out now you lose the benefit of long-term growth. Your savings will not earn compound interest – this is when your interest earns interest.
Try to repay the money that you withdraw
- Even small extra payments can grow into large savings.
- The more money you save now, the more you will have to live on after you stop working.
- You will create a buffer for emergencies – extra savings in case you ever need it.
How do you make additional voluntary contributions (AVCs)?
- You can contribute part of your salary regularly – either permanently or for a shorter period.
- You can contribute a one-off lump sum. You can make these contributions whenever you can afford it.
- When you make extra contributions, one-third goes to your savings pot and two-thirds to your retirement pot.
Top up your savings with Additional Voluntary Contributions. The more you save now, the more MONEY YOU WILL HAVE WHEN you retire.