Metropolitan takes the lead by making the first payouts in the new ‘two-pot’ system

Source: Pixabay

With the legislation allowing access to a portion of retirement savings commencing on Sunday, 1 September, 2024, Metropolitan was fully prepared to manage queries and make payouts from the first day, thanks to its chatbot technology and other back-office systems.

“Our proactive approach in leveraging advanced digital solutions prior to 1 September demonstrated our resilience and commitment to providing outstanding service to our clients in the face of legislative changes,” said chief executive officer, Peter Tshiguvho.

“Our adaptation of WhatsApp and online chatbots, familiar to many clients, now includes functionality that streamlines the process for clients, allowing them to verify their eligibility for policy withdrawals while eliminating unnecessary administrative steps.”

Metropolitan’s digital technology has not only significantly enhanced user experience for clients but has also garnered the company a 2024/2025 Ask Afrika Orange Index award for Long-term Funeral Insurance Industry category.

Two-step process

The two-step process begins with clients checking their eligibility for withdrawal using the chatbot. Less than 1% of Metropolitan's retirement-annuity members fall outside the two-pot system, all of whom are over 55 years old and may also be offered early retirement.

Once the eligibility compliance process is completed, members proceed to apply for withdrawal via an SMS link. Upon completion of these steps, Metropolitan’s advanced internal robotic process automation (RPA) is activated, interfacing directly with Sars for a tax directive in just 80 minutes. Upon receipt of the tax return, automatic authorisation ensures clients are paid out promptly and efficiently.

On Sunday 1 September, 695 Metropolitan clients accessed the two-pot menu via the chatbot and completed the eligibility request. By Monday, 2 September, this figure increased to 8,290, and on Tuesday, 3 September, 2024 it exceeded 11,400.

“I am proud of the agility and collaboration our teams displayed in the months leading up to 1 September. There were long nights and early mornings to ensure our systems were ready to handle the anticipated high volume of queries. We will continue to monitor and refine our chatbot technology to ensure continued excellent service delivery to our clients,” said Tshiguvho.

Metropolitan clients’ Sars directives have revealed that the average tax rate for withdrawals is 36%, indicating that those applying for access to their funds fall into the R40k middle-income category, rather than the lower-income bracket as predicted.

Despite the increasing financial burden on all South Africans, Metropolitan strongly advises the preservation of retirement policies wherever possible and recommends making withdrawals only after consulting with a financial advisor.