11 Nov Two-Pot and Member Counselling
The retirement fund industry showed resilience and agility in meeting the demands of the two-pot savings system. What answers do the industry need in 2026? Salt EB addresses one pressing challenge.
Ironically, people who need counselling and advice the most often don’t have access to it. Counselling extends beyond the impact that accessing two-pot savings will have on retirement because if the savings are urgently needed for school fees, essential vehicle repairs, paying expensive debt, medical costs or just eating, then the ‘to do or not to do’ question is a moot point.
Counselling is needed in areas such as budgeting. Further, the sourcing of alternative ways to raise funding, and should even extend to debt relief mechanisms given that a big chunk of two-pot savings withdrawals is used to service debt. All these factors are intertwined, and a holistic approach is needed to reduce withdrawals from two-pot savings.
The next question is who will provide the level of counselling needed?
Members need guidance but even large companies don’t have the skills or resources to provide the counselling desperately needed by their employees, let alone smaller companies. The onus then appears to rest with the pension fund sector which has the communication expertise to do so. However, given the extent of the need and the intertwining of many actors, it will take real-time AI-led modelling and cross-sector collaboration to find answers to complex employee or member counselling needs.
salteb.co.za
Salt Employee Benefits is South Africa’s largest independent retirement fund administration company.