More and more cash-strapped workers are turning to retirement savings for quick financial relief while others even resign for speedy access to their savings.
A trend of repeat withdrawal has been noticed across all pension/provident fund administrators since the introduction of the two-pot retirement withdrawal system in September 2024. The system allows workers the ability to withdraw from the savings component of their retirement.
Momentums data shows that only 5 of claims submitted since March 1 this year are first-time withdrawals and about 33 are second withdrawals, while 62 were third withdrawals. A similar pattern is reflected across fund administrators.
