Momentum Group has reportedly experienced R2.5 billion in outflows from retirement funds since implementing South Africa’s two-pot retirement system in September 2024. The company stated that it had received close to 150 000 withdrawal applications, with most requests coming from individuals aged between 40 and 49, while 60% of all applicants were low-income earners. Despite these outflows, Momentum reported robust financial results for the year ended 30 June 2024. Normalised headline earnings increased by 27% to R4.4 billion and operating profit rose by 31% to R3.6 billion. New business sales grew by 19% to R82.1 billion, though the value of new business marginally declined by 2% to R589 million. Momentum Corporate, Momentum Investments and Momentum Retail significantly contributed to the sales volume increase, boosting sales by 47%, 19% and 11%, respectively. Momentum remains optimistic about the future, citing easing inflation, interest rate cuts and improved economic conditions as key factors that will benefit clients and strengthen business performance.
