South Africa sitting on a R90 billion goldmine of unclaimed assets – check if you are owed money
The new two-pot retirement system could inject as much as R40 billion into the South African economy and stimulate growth – but experts say an even bigger pot of gold worth R90 billion is sitting gathering dust.
Rowan Gordon, CEO of digital benefits platform Robin Hood, says that almost R90 billion of unclaimed benefits are owed to approximately 8 million people in South Africa.
This represents a substantial amount of wealth that is locked away from the economy—a massive missed opportunity for economic growth and financial empowerment, he said.
The group welcomed the launch of the new two-pot retirement system in the country this month, noting that this was the beginning of a stimulus transformation in the country.
According to the Special Occasional Bulletin of Economic Notes published by SARB in August 2024, the “two-pot” system is set to release billions into the economy.
The publication estimates that if citizens act prudently, up to R40 billion will be withdrawn from pension funds in the fourth quarter of 2024.
This withdrawal rate is projected to halve and be spread over the full year in 2025 and 2026.
“This results in South Africans having an additional R31 billion in disposable income for the last quarter of 2024 and approximately R16 billion in each of the following two years,” Gordon said.
In parallel with the implementation of the “two-pot” system, though, the Financial Sector Conduct Authority (FSCA) and National Treasury have also highlighted the issue of unclaimed benefits in South Africa.
Reports indicate that unclaimed benefits have reached an alarming total of R90 billion, with R48 billion of this amount remaining unclaimed in Pension and Provident Funds owing to nearly 4.5 million members.
“These funds constitute a substantial financial resource that, if returned to their rightful owners, could transform lives, provide a significant boost to the economy, and generate millions in tax revenue, much like the ‘two-pot’ system,” Gordon said.
Unclaimed benefits refer to funds that belong to individuals that remained unclaimed, often due to a lack of awareness, outdated contact information or administrative issues.
Tracing beneficiaries is largely a manual process which is plagued by inefficacies and credibility challenges.
These assets include retirement fund benefits, bank deposits, interests in collective investment schemes, life and non-life insurance policies, and securities.
It also includes any income, dividend, or other proceeds from or related to those financial products and financial instruments.
Lost accounts and unclaimed financial assets are a global challenge and unclaimed retirement benefits impact underprivileged and vulnerable people disproportionately.
“In a nation grappling with poverty and unemployment, unlocking these funds can empower citizens to invest in education, launch businesses, enhance their financial stability, and serve as a catalyst for a stronger, more resilient economy,” Gordon said.
How you can check if you have unclaimed assets
Millions of South Africans are linked to unclaimed assets and benefits they do not know about.
There are many reasons for unclaimed assets, including poor information updates and record keeping, employer oversight, and changes in intermediaries.
A good start to see whether you have unclaimed assets is to visit the FSCA website and use the search tool to input basic information like your name, surname, identification number, fund name, and employer.
If there’s a potential match, they’ll provide you with the contact details of the relevant fund or administrator. You can then contact them directly and follow their usual claims process.
According to the Association for Savings and Investment South Africa (ASISA), people who believe they are entitled to unclaimed benefits from a life insurance policy or an investment not cashed in must contact the financial services company involved.
Life insurers and investment companies will require proof that the person making the enquiry has a valid interest in the information about the policy or investment account.
If you have unclaimed funds or assets, you should identify the source first and then contact the holder.
Simply put, you should contact the organisation, like a bank or asset manager, that is holding your unclaimed funds.
You’ll need to provide proof of your identity and entitlement. This might include details like your name, ID number, fund name, employer, policy or account number, or certificate number.
You should follow the claims process closely. Each company has a unique process for handling claims.
According to Gordon, Robin Hood, operating on a pilot basis with Standard Bank’s OneHub has developed a digital platform to try and connect South Africans with their unclaimed assets. More information can be found here.
Read: What to expect from interest rates in South Africa next week
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