National Treasury expects government to spend about R758 billion on employee compensation in 2026/27.
More than half a million government employees tapped into their retirement savings in just seven months, withdrawing about R15 billion under the two-pot system despite being among South Africa’s more securely employed workers.
The Government Pensions Administration Agency processed 564,547 two-pot retirement claims between September 2024 and March 2025, according to Statistics South Africa.
That works out to an average withdrawal of about R26,570 per claim, at a time when only about 6% of South Africans are estimated to be able to retire comfortably. Reports put overall two-pot withdrawals across the country at more than R60 billion.
South Africa employs roughly 1.3 million public servants, meaning the number of claims was equivalent to about 43% of the government workforce.
