South Africa, 6 September 2024: the rollout of the two-pot retirement system has led to a surge in activity for Sanlam Corporate, which received over 20 000 savings component claims via its portal and app on just the first two working days of September.
This volume far exceeds the monthly average of 7 000 to 8 000 retirement, withdrawal, or retrenchment claims usually processed by Sanlam Corporate. The average claim amount remained steady at R20 000 over the two days.
“Most claims were processed through Sanlam’s straight-through processing capabilities, requiring minimal manual intervention,” said Nzwa Shoniwa, managing executive at Sanlam Corporate. “This indicates effective communication with our clients prior to two-pot implementation and the success of the preparation measures put in place.”
High demand and strong engagement
The high demand on the Sanlam Corporate Portal and Sanlam Portfolio App during the initial days of the system's launch demonstrates the strong interest in the Two-pot system.
The app and portal has seen a surge of new registrations since 3 September - 750% compared to the usual daily sign-ups. This was anticipated by the team.
The 2024 Sanlam Benchmark Survey found a marked increase in consumer awareness in the lead up to two-pot’s launch, with 59% of respondents planning to access the savings component in 2024, compared to just 31% in 2022.
Shoniwa adds, “We know that South Africans are struggling financially given the current economic climate. The number of members resigning or being retrenched from their employers who encashed all or some of their retirement savings increased from 53% in 2022 to 72% in 2024.
Of these members in 2024, 54% spent their encashed retirement savings on paying living expenses and reducing and settling debt. People are using these funds to make ends meet.
This is one of the key objectives of the two-pot system – to provide South Africans with access to emergency funds when they really need it.
To manage the surge in client engagement, Sanlam Corporate extended the operating hours of its client contact centre.
This experienced a 750% increase in call volumes during the first few days of September, compared to previous years, peaking on 4 September at close to 7 500 calls and WhatsApps.
“We anticipated a high volume of queries and have implemented measures to support our clients effectively through this transition,” explains Anna Siwiak, Head of Product Development for Sanlam Umbrella Solutions.
Tax submissions
Over the past two days, tax directives requests have been submitted and received back from Sars without delays. Roughly 1% of the tax directive requests have been rejected by Sars , and for 13% of requests, Sars issued an IT88.
As a reminder, Sars will issue an IT88 if a member has outstanding tax from a previous period or has not submitted one or more annual tax returns for their personal taxes.
These outstanding tax amounts will then be deducted from the members’ savings component claim prior to payment to the member.
Enhancing client support and infrastructure
Siwiak said: “Sanlam Corporate has been proactive in responding to the challenges presented by the high volume of claims.
“We upgraded our infrastructure and continue to monitor and test the system to ensure a smoother experience for members in the future.
Our focus is on providing a seamless experience for our clients and ensuring they have all the information and support they need to make informed decisions.”
Financial advice
Members are encouraged to seek advice to fully understand the impact of early withdrawals on their retirement savings.
The Sanlam website offers various tools, including a two-pot calculator, to assist in making informed choices.
Sanlam Corporate remains committed to providing support every step of the way, to enable members to navigate this new system with confidence.
“Our comprehensive communication strategy ensures that members receive updates at every stage of their claims process, reinforcing our commitment to delivering a high-quality client experience,” said Siwiak.
Sunday Independent