Did the introduction of the Two-Pot System stop retirement savings leakage?

Yes
No

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While the Two-Pot System aimed to improve preservation by splitting contributions into a “Savings” pot and a “Retirement” pot, it has not stopped early withdrawals. By June 2025, nearly R57 billion had been withdrawn through the new access channel, showing that leakage continues, although through a different mechanism.

Incorrect

While the Two-Pot System aimed to improve preservation by splitting contributions into a “Savings” pot and a “Retirement” pot, it has not stopped early withdrawals. By June 2025, nearly R57 billion had been withdrawn through the new access channel, showing that leakage continues, although through a different mechanism.

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When was the Two-Pot Retirement System introduced in South Africa?

1 January 2024
1 September 2024
1 March 2025

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The Two-Pot System was introduced on 1 September 2024 to encourage better long-term preservation of retirement savings.

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The Two-Pot System was introduced on 1 September 2024 to encourage better long-term preservation of retirement savings.

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True or false? Roughly 30% of formal-sector workers in South Africa do not belong to any retirement fund.

True
False

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True. National Treasury has indicated that about 30% of formal-sector workers are not members of any retirement fund, largely due to the voluntary nature of participation.

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True. National Treasury has indicated that about 30% of formal-sector workers are not members of any retirement fund, largely due to the voluntary nature of participation.

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What is auto-enrolment designed to do?

Allow unlimited early withdrawals
Reduce employer responsibilities
Make retirement saving automatic with an opt-out option

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Auto-enrolment makes retirement savings the default option. Employees are automatically enrolled in a retirement fund, but may choose to opt out. The goal is to improve coverage and long-term outcomes.

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Auto-enrolment makes retirement savings the default option. Employees are automatically enrolled in a retirement fund, but may choose to opt out. The goal is to improve coverage and long-term outcomes.

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Which country introduced auto-enrolment in 2012?

Australia
United Kingdom
Canada

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The United Kingdom introduced auto-enrolment in 2012, automatically enrolling eligible workers into workplace pensions with the option to opt out.

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The United Kingdom introduced auto-enrolment in 2012, automatically enrolling eligible workers into workplace pensions with the option to opt out.

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What was the minimum total contribution rate phased in under the UK auto-enrolment system?

5%
8%
12%

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The UK phased in a minimum total contribution rate of 8% of qualifying earnings, typically split between employer and employee.

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The UK phased in a minimum total contribution rate of 8% of qualifying earnings, typically split between employer and employee.

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True or false? Most auto-enrolled members actively change their default investment funds.

True
False

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False. Evidence from the UK shows that most members remain in the default fund at the default contribution rate for most or all of their working lives. This makes a good default design critical.

Incorrect

False. Evidence from the UK shows that most members remain in the default fund at the default contribution rate for most or all of their working lives. This makes a good default design critical.

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Why are default investment portfolios so important?

Because members rarely make changes
Because fees do not affect outcomes
Because employers choose them annually

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Default portfolios are crucial because most members do not actively manage their retirement savings. The structure, life-cycle strategy, and fee levels of the default fund significantly affect retirement outcomes over time.

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Default portfolios are crucial because most members do not actively manage their retirement savings. The structure, life-cycle strategy, and fee levels of the default fund significantly affect retirement outcomes over time.

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Which country mandates employer retirement contributions currently set at 12%?

South Africa
United Kingdom
Australia

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Australia mandates employer contributions under its Superannuation system, currently set at 12% of ordinary time earnings.

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Australia mandates employer contributions under its Superannuation system, currently set at 12% of ordinary time earnings.

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What is one major advantage of large, consolidated retirement funds?

Higher administration costs
Greater bargaining power and lower fees
More frequent withdrawals

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Large funds benefit from scale, which allows them to negotiate lower administration and investment fees. Lower fees compound into significantly higher retirement savings over a working lifetime.

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Large funds benefit from scale, which allows them to negotiate lower administration and investment fees. Lower fees compound into significantly higher retirement savings over a working lifetime.

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Have you withdrawn from your retirement savings under the Two-Pot System?

Yes, once
Yes, more than once
No

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Correct

Incorrect

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Do you support the introduction of auto-enrolment in South Africa?

Yes, strongly
Yes, but with gradual contribution increases
No, I prefer voluntary participation

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Correct

Incorrect

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Did you find this quiz helpful and informative?

Yes, it clarified the impact of the Two-Pot System
Yes, it helped me understand auto-enrolment better
I was already familiar with these developments

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Correct

Incorrect

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What aspects of retirement reform would you like to learn more about?

Contribution rates
Investment defaults
Fee structures
Preservation rules
International comparisons

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Correct

Incorrect

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Any other aspects of retirement reform would you like to learn more about?

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Incorrect

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Auto-enrolment and retirement reform: the shift after the Two-Pot System

Auto-enrolment and retirement reform: the shift after the Two-Pot System

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