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The Citizen
a day ago
- Business
- The Citizen
Two-pot retirement system: warning about long-term consequences
Is your emergency big enough to make it necessary to withdraw some of your retirement savings under the two-pot retirement system? While consumers are smiling now as they are able to use the money from the savings pot under the two-pot retirement system, experts are sounding the alarm that annual withdrawals could leave pension fund members very poor in retirement. John Manyike, head of financial education at Old Mutual, points out that the number of South Africans who can retire with adequate pension has been at a staggering 6% and therefore people who withdraw funds under the two-pot retirement system are expected to be very poor when they retire. He was speaking at the company's mid-year economic outlook presentation. 'Since the inception of the two-pot retirement system, Old Mutual saw withdrawals of a total of almost R4 billion, with fund members receiving about R2.8 billion, with withdrawals averaging R12 2000 per member. 'People are not using their withdrawals from the savings pot of the two-pot retirement system to buy cars. Most of them will tell you they are withdrawing funds to pay debts. However, if you look at reports from the banks I do not think it will confirm that people are paying off their debts.' ALSO READ: Two-pot retirement system: Almost 4 million withdrawals close to R57 billion The profile of most who withdraw under the two-pot retirement system According to Manyike, most members who withdraw under the two-pot retirement system are between the ages of 31 and 40, with the highest numbers between the ages of 36 and 40. He finds it worrying that people at their prime age are withdrawing from their retirement funds. The majority of people making withdrawals falls earn between R5 000 to R10 000 per month and Manyike says this show that more vulnerable people who may be struggling to make ends meet who are dipping into their retirement savings. 'We hope they use this money for emergencies, as it was intended for.' Michelle Acton, chief customer officer at Old Mutual Corporate recently pointed out that Old Mutual Corporate's 2025 Member Two-Pot Withdrawal Survey showed that 45% of retirement fund members who accessed their savings under the two-pot retirement system did so to service debt. Another 35% used the funds to cover everyday expenses such as groceries, school fees and rent, while more than 70% said they would withdraw again. The tax implications would keep them from withdrawing again and not concerns to preserve their retirement savings for retirement. 'We also noticed a significant increase in savings pot claims at the start of the new tax year, despite only small amounts being available. Of the 413 000 savings pot claims submitted since the two-pot retirement system's inception, 93 000 or roughly 23% were made in the new tax year alone, from 1 March 2025 onwards. 'This confirms the earlier finding: employees will withdraw again if they can, due to financial stress.' ALSO READ: Two-pot retirement system: 75% of second year withdrawals are repeats Use of two-pot retirement system raises questions about financial literacy Acton says that for some pension fund members, this raises questions about financial literacy, although that perspective risks overlooking another issue. 'Employees are not irrational — many are simply financially overwhelmed. They are not failing to plan but struggling to survive.' She points out that the introduction of the two-pot retirement system shifted how employees interact with their retirement savings. 'This creates challenges as well as opportunities for businesses. As employees adjust to the new system, business leaders must step up to support their workforce in balancing short-term financial needs with long-term security.' As early trends under the two-pot retirement system begin to emerge, employers must reckon with a difficult reality: current financial wellbeing strategies may need to be rethought to truly support their employees' financial security, Acton says. 'While workers are engaging with their retirement savings, they do so under financial pressure and often without the support they need to make sustainable long-term decisions.' ALSO READ: Two-pot retirement system: withdrawals not being used for emergencies High withdrawal does not mean failure of two-pot retirement system Acton says it is easy to interpret high withdrawal rates as a failure of the two-pot retirement system or a lack of engagement with the reform. However, she says, this overlooks the core intent of the policy. 'One of its most important features is that members can no longer cash out their full retirement benefit when changing jobs which was historically the biggest destroyer of retirement outcomes in South Africa. 'Old Mutual's own modelling shows that the system improves long-term outcomes, particularly by closing this critical preservation gap. 'But it also shows a more sobering truth: many South Africans simply do not earn enough to save and preserve simultaneously. No amount of financial education can change that without acknowledging it first.' She says the Remchannel April 2025 Salary and Wage Survey clearly illustrates this income strain. 'Despite the inflation rate easing to approximately 3% and average salary increases surpassing this rate at 5.82%, employees continue to experience financial pressures due to rising living costs, particularly for essential goods and services. 'For many households, the salary increases provided are insufficient to absorb the escalating living expenses or reduce debt, let alone support long-term savings. People are making tough choices, not careless ones.' ALSO READ: Two-pot retirement system: rather find an alternative than dip into the savings pot Surge of interest at start of two-pot retirement system The initial rollout of the two-pot retirement system sparked a surge in interest, revealing just how little many employees knew about their retirement benefits. The traction on social media, from TikTok discussions to cheeky brand mentions by the likes of Nando's, shows that retirement savings are no longer seen as a distant or abstract concern but are entering everyday conversations. Acton says the big question now is: how do we use this momentum to benefit employees and ensure they make informed, long-term financial decisions? 'A key challenge for businesses is that meaningful workplace discussions about retirement planning are still too rare. 'Despite growing attention on financial wellbeing, the topic remains sidelined in many organisations, often clouded by jargon, distrust, or lack of visibility.' She says a critical insight from these internal conversations is that while retirement funding was once largely seen as the employer's responsibility, today's employees are expected to plan for their futures on their own, a shift that can leave many employees feeling ill-equipped and unsure of how to manage their financial future. 'Another key observation is that financial education often fails because the information provided can feel disconnected from employees' real-life circumstances. 'For financial education to be effective, it must resonate with employees on a personal level, considering their individual financial realities, challenges, and needs.'
The Citizen
a day ago
- The Citizen
Drone operators catch maize thieves near Delmas
Security drone operators doing routine aerial patrols had no idea they were about to stumble upon what can only be described as a massive maize theft syndicate near Delmas. Farmcor AS Security drone operators spotted two people carrying 50kg woven polypropylene bags on their heads as they exited a client's maize fields near Hawerklip, close to Delmas Colliery on the R50, Leslie Road, at around 09:00 on July 12. The pair was seen leaving private farmland and heading toward a nearby informal settlement. The drone operators continued monitoring them as they entered a shack in the settlement, where they offloaded the bags. Farmcor AS Security was immediately informed, and reaction units swiftly responded to the scene. Upon arrival, members of AfriForum's Delmas Valke Neighbourhood Watch, CamFX Security and other role players joined the operation. Initial investigations revealed the shacks were used to store yellow maize allegedly stolen from adjacent fields. When reaction members requested access to other dwellings, they were told those were unoccupied. A source close to the investigation said security personnel were informed of more storage facilities nearby. The teams were then led to several zinc shelters, where they confirmed that stolen maize was stockpiled in large quantities. It was stored in about 200 woven bags, pulled from almost every shack. The two initial suspects evaded capture, but the teams recovered about 50 tons of yellow maize. ALSO READ: Learner from Evander High School gets chosen as exchange student to Egypt The price of yellow maize for the July 2025 contract on the South African Futures Exchange is approximately R4 019.80 per ton. Consequently, 50 tons would be valued at roughly R201 000. Several suspicious vehicles, including a 32-ton truck and trailer, were also identified nearby and are believed to be linked to the syndicate involved in the theft operation. Hennie Bekker, AfriForum's district co-ordinator for the Highveld, told the Streeknews that grain theft is an ongoing concern in the agricultural industry. 'Farmers suffer immense losses due to grain theft. Proving the origin of a maize cob or pit is challenging. For instance, if a car is stolen, its ownership can be proved via a VIN or registration number, but proving ownership of grain is impossible,' Bekker explained. 'The real value of what is stolen is also difficult to determine. These thieves steal grain in bags or come onto lands with bakkies, sometimes stealing hectares at a time, so it is nearly impossible to quantify the losses. 'The additional cost of security is another contributing factor to the losses farmers suffer from grain theft, and there is, unfortunately, no real solution to this problem,' Bekker concluded. The Streeknews was unable to confirm at the time of going to print whether there were any arrests in the Hawerklip case. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
The Citizen
2 days ago
- The Citizen
Police applications surpass 900K, less than 1% will get the job
Female candidates dominated the police application process. The South African Police Service (Saps) has received over 900 000 applications for its Basic Police Development Learning Programme, but only 0,611% will get the job. The submission window will close on Friday at midnight. Applicants will no longer be able to submit their applications after this deadline. 'As of Thursday, 17 July 2025, the Saps has received more than 927 000 applications thus far,' confirmed police spokesperson, Brigadier Athlenda Mathe. Women lead police trainee application numbers Female candidates have dominated the application process. Mathe revealed that 527 673 young women have submitted their applications so far. Male applicants total 400 204 applications. This gender split shows that women comprise more than half of all prospective trainees. The police service is seeking applicants 'from all races and genders, i.e. from young, energetic, intelligent, physically and mentally fit individuals, dedicated to serving their country by pursuing a career in policing,' according to the official recruitment notice. The position, formally titled Police Trainee with reference number TRAINEE2025/2026, falls under the Saps Act, 1995 (Act No 68 of 1995). This recruitment drive represents a significant opportunity for individuals looking to begin their careers in law enforcement while contributing to public safety and security across South Africa. The recruitment offers a structured compensation package that evolves with training phases. During the institution phase, which involves 'basic training in the academies,' successful applicants will receive a monthly stipend of R4 500. Upon completion of academy training and progression to the probation phase, officers will earn a salary notch of R238 629 per annum. Saps emphasised that 'appointees will receive the applicable service benefits from probation phase,' indicating additional benefits beyond the base salary once training is completed. ALSO READ: More than 2 600 wanted criminals linked to violent crimes arrested in South Africa Educational requirements and specialised placement The recruitment sets specific educational standards for applicants. Saps stated that candidates in possession of a three-year National Diploma or Degree recorded on the National Learner Record Database (NLRD) on at least: A NQF 6 or higher level in Law Policing Criminology Law Enforcement Forensic Investigation IT, would be considered first. According to Saps, those meeting these qualifications will be considered for placement in the following units: Directorate for Priority Crime Investigation (DPCI) Detective and Forensic Service Crime Intelligence (CI) Interested candidates must submit applications through the official Saps website using the designated careers portal. The service warned that 'applicants should take note that they are limited to one application, the system is restricted and will only accept one application.' Gauteng tops provincial applications 'The Gauteng province has brought in the most applications with more than 240 000, followed by KZN with more than 179 000,' Mathe stated. Limpopo came in third with more than 102 000 prospective candidates. The Eastern Cape contributed over 93 000 applications. Mpumalanga followed with more than 89 000. The Western Cape sat in sixth position with over 76 000 applications. Meanwhile, the Free State recorded more than 64 000 submissions. 'The North West province is the second last province with more than 57 000, with Northern Cape bringing in the least applications as compared to other provinces with more than 22 000,' Mathe noted. '261 255 applicants are thus far in possession of a valid South African driver's license,' Mathe said. ALSO READ: JUST IN: Another mass shooting at informal settlement in Cape Town Police applications selection process challenges Saps faces the challenge of accommodating only a tiny fraction of trainees in the available programme spaces. 'It should be noted that not everyone will make it to the selection process due to limited space availability on the training Programme, with only 5 500 spaces available,' Mathe explained. Successful candidates will undergo comprehensive evaluations before acceptance. 'Those who are successful will be called to go through various assessments, including a psychometric and integrity assessment, physical assessment, medical assessment and an interview,' she explained. 'The Saps wishes all applicants the best in this process,' Mathe noted. The police service has acknowledged the competitive nature of the selection process as the recruitment phase draws to a close. READ NEXT: Illegal mining and dolomite threaten Joburg's foundations
The South African
4 days ago
- Business
- The South African
'Nigerian scammers' use Siya Kolisi to dupe public in AI video
Springbok captain Siya Kolisi's likeness has been used by 'Nigerian scammers' who created an AI video featuring the popular player. In the video, 'Siya' appears to encourage his followers to engage in an investment scheme. On the X platform, an AI-created video of Siya Kolisi has left many South Africans amused and confused. The clip features the Springbok captain's likeness, encouraging the public to 'invest' in a programme that could generate high interest. Speaking in a 'Nigerian' accent, the man South Africans recognise as Kolisi says: 'I guarantee that everyone who registers this month and invests the minimum amount of R4 400 will be able to earn their first R100 000 Seemingly trying to convince the public, 'Siya Kolisi' added, 'I have no need to lie. I use this project myself, from which I receive additional high income. It is completely transparent, legal, and has already helped thousands of people around the country. 'I will show proof that it really works'. On X, South Africans have been amused and somewhat amazed at the creativity of scammers. Siya Kolisi has yet to respond to the scam's use of his image. Siya Kolisi is not the first Springbok to be used to prey on the public in a scam. In 2019, SA Rugby issued a stern warning to the public about social media posts using coach Rassie Erasmus to try to lure money from them. The posts featured fake screenshots of articles from reputable publications. SA Rugby shared: 'The authors are trying to steal your money. And for absolute clarity, Rassie – or any other Springbok personality whose identity may be hijacked – does not have investing advice for you; does not want you to send money to him or her, and is not recommending any kind of business opportunity even if it relates to rugby. These are all scams'. It added: 'Please ignore them, keep your money in your pocket and share this advice with any friends who may be in danger of being duped'. SCAM ALERT: Do not be fooled by fake news stories purporting to come from reputable websites and in social media… Posted by Springboks on Tuesday 17 December 2019 Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 . Subscribe to The South African website's newsletters and follow us on WhatsApp , Facebook , X, and Bluesky for the latest news.
The Citizen
4 days ago
- Business
- The Citizen
R1m for a watch? Johann Rupert's Cartier proves luxury is alive
The most expensive Cartier watch is worth R4 230 654. Richemont, owned by Johann Rupert, one of South Africa's billionaires, has seen remarkable growth for the quarter ended 30 June 2025, a time when luxury goods are not a priority for many. In a time when most people are struggling to make ends meet and are living hand-to-mouth, one would assume that everyone is struggling. However, just beneath the surface of this collective hardship lies a vastly different reality where luxury is thriving. Richemont is a luxury goods holding company that owns brands such as Cartier. Watches from this brand range between R59 000 and R4 million. Rupert's company's sales went up by 6% at constant exchange rates and by 3% at the actual exchange rate. ALSO READ: Johann Rupert the wealthiest person in SA according to two rich lists Rupert is richer, thanks to watches According to a media statement by Richemont, sales from the jewellery division increased by 11%. However, analysts had predicted an 8% growth. Richemont's jewellery division includes Cartier, Van Cleef & Arpels, and Buccellati. One item from any of these brands would cost more than R100 000, showing that the economic crisis experienced by people does not apply to everyone. This unsettling truth echoes the message from George Orwell's Animal Farm, where the animals rise for equality, only to find that some are more equal than others. While many line up for groceries, a few browse exclusive boutiques, untouched by the economic strain that defines the daily life for most. Watches are an investment People who can often afford high-end jewellery buy it as a form of investment. A Cartier watch, after a few years, can be worth more than it was purchased for. Richemont's data show that for the first quarter, Europe led in sales, while the Middle East and Africa contributed the least to growth. ALSO READ: Jannie Mouton back on Forbes' list – Here are South Africa's dollar-billionaires 'Retail sales accounted for 69% of Group sales, with growth across all regions, excluding Japan. 'Wholesale sales growth was driven by solid increases in the Americas, Europe and Middle East and Africa. Online retail sales showed robust growth across almost all regions.' How much is it worth? According to Cartier's website, the cheapest watch is Tank Must de Cartier, which is worth R59 156,63 ($3 300). The most expensive is Santos de Cartier wwatch,worth R4 230 654 ($236,000). However, there are some older collections worth significantly more than the ones available in-store and online. Like the Cartier Cheich Montre Bracelet in Yellow Gold Circa 1983, which was sold for $1.1 million in 2022. One of the most popular items from Cartier is their Love bracelet. The bracelet is worth R109 326,03 ($6 100). NOW READ: 'Imagine if he took the Guptas': Is Rupert's place in US delegation double standards or good for business?
