EasyRetire data shows fee-free access does not drive retirement fund withdrawals
EasyRetire, administered by RISE Proprietary Limited, has released a comprehensive analysis of member behaviour under South Africa’s two-pot retirement system, covering the period from September 2024 to May 2026.
The findings challenge one of the retirement industry’s most widely held assumptions: that making retirement savings easier and cheaper to access will encourage members to withdraw more of their money.
EasyRetire charges no administration fees for two-pot withdrawals and has intentionally removed unnecessary process friction. Yet the data shows that its members preserve retirement savings at significantly higher rates than national benchmarks.
In the 2027 tax year so far, 81.4% of EasyRetire members chose not to withdraw from their savings component, more than 17% higher than the industry benchmark of approximately 64% as reported by the Sanlam Benchmark Survey 2025. Over the three-year period analysed in the Sanlam survey, aggregate disinvestment exposure per member declined by 68%.
“The retirement industry has traditionally believed that introducing friction discourages withdrawals and improves preservation,” says Charles Savage, CEO of Purple Group Limited, EasyRetire’s holding company. “Our experience has consistently shown the opposite.
“Whether it’s investing through EasyEquities or saving for retirement through EasyRetire, people make better long-term decisions when they have clear information, complete transparency and control over their money. The two-pot data reinforces that view.”
The findings suggest member behaviour may be influenced more by information and engagement than by administrative barriers.
“The data indicates that accessibility and preservation are not necessarily opposing objectives,” says Nicola Comninos, CEO of EasyRetire. “Members need access to their savings when life happens.
“What appears to make the difference is ensuring they have enough information to understand the long-term implications of their choices. When people can see both the immediate benefit and the future cost, they often make more considered decisions.”
Strong preservation despite easier access
The EasyRetire analysis shows that aggregate disinvestment exposure per member fell from R9,513 in 2025 to R3,028 in 2027. At the same time, claims processing efficiency improved significantly, with average turnaround times declining from 3.7 days to 2.1 days.
More than 94% of claims were settled within EasyRetire’s five-day service-level agreement and no claim exceeded 20 days.
Despite the ease of access, the majority of members consistently chose not to withdraw.
Understanding the true cost of withdrawals
EasyRetire’s research highlights the substantial long-term cost associated with accessing retirement savings early.
A member who withdraws R20,000 at age 40 could forgo approximately R215,000 in retirement capital by age 65, assuming annual growth of 10%. At a 12% annual growth rate, the opportunity cost rises to more than R340,000.
Tax further reduces the value received. Across all withdrawals, an average of 26.4% was deducted in tax before members received their payout, with effective rates exceeding 40% for members in the highest tax brackets.
Identifying high-risk withdrawal behaviour
The analysis also identified a relatively small group of members responsible for a disproportionate share of total withdrawals.
Approximately 17% of claimants withdrew funds in all three years under review, accounting for more than a quarter of total fund disinvestment. These members withdrew an average cumulative amount of R47,242 during the period.
EasyRetire’s administration platform allows these members to be identified and engaged proactively, creating opportunities for targeted communication before each new tax year begins.
The power of transparency
More than half of repeat withdrawal claims were submitted within 90 days of 1 March, suggesting a clear behavioural pattern and a critical intervention window.
EasyRetire believes personalised communication, particularly showing members both their current savings balance and the future retirement value of funds withdrawn, can materially influence decision-making.
“The most powerful intervention is not an additional fee or a more complicated process,” says Comninos. “It is helping people understand the real rand value of the decision they are about to make.”
Lessons from EasyEquities
The findings mirror behavioural trends observed across Purple Group’s broader investment ecosystem.
For more than a decade, EasyEquities has operated on the principle that investors who have greater visibility into their portfolios and a better understanding of their financial choices tend to make better long-term decisions.
While retirement savings and retail investing are fundamentally different products, the underlying behavioural insight remains consistent: transparency drives engagement, and engagement improves outcomes.
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