Masegomotso Ramalosa, Sygnia Umbrella Retirement Fund Consultant at Sygnia

The retirement industry has had a busy first few months of 2026. Several significant changes landed almost simultaneously that, viewed as one, could be overwhelming to those not familiar with the technical details.

Stripping it back, though, the message is simple and clear. Retirement funds are being guided to focus less on process and compliance and more on people – on real outcomes for their members.

It is no longer sufficient for a fund to simply describe itself as “compliant”. Regulators, trustees and stakeholders are being asked a much tougher question: Are members genuinely better off?

What has changed?

The developments that arrived at roughly the same time are:

• The two‑pot retirement system, which is now fully operational.
• Conduct Standard 2 of 2025, which introduces new expectations for administrators.
• King V governance principles, being applied across retirement funds.
• And the Conduct of Financial Institutions Bill (CoFi) is looming large, even without a confirmed implementation date.

Each of these developments is meaningful on its own. Together, they represent a fundamental shift in how the industry is expected to operate.

The two‑pot system: Short‑term relief, long‑term consequences

Members have been accessing their savings pot, and in large numbers.

Industry data suggest that most withdrawals have been relatively modest, often under R15 000. For many members, this flexibility has provided genuine relief in a high cost‑of‑living environment. In the short term, the system is doing what it was designed to do.

The concern lies in the cumulative effect: Small, repeated withdrawals materially reduce retirement outcomes over time. What feels manageable today may translate into a significantly lower pension tomorrow.

This places funds in a difficult position. They must:

• Give members access to their savings when real financial pressure arises;
• And help them understand the longer‑term impacts of their choices.

Counselling, educational tools and clear communication are critical for members now, as access without understanding will undermine their retirement security.

Conduct Standard 2: Service quality under the spotlight

Conduct Standard 2 of 2025 sends a clear signal that administration is not just about processing transactions efficiently.

Administrators are also expected to treat members fairly, communicate clearly and operate within robust governance frameworks. This includes:

• Clear and measurable service standards
• Effective complaints‑handling processes
• Improved controls and oversight.

Put simply, administrators must step up and trustees must actively monitor that they do so.

King V: Governance with real substance

King V is ultimately about how retirement funds are governed, but with a more practical and accessible approach than before.

It moves away from box‑ticking and places greater emphasis on outcomes. Trustees are expected to demonstrate that they are:

• Acting ethically and transparently
• Taking a long‑term view
• Making decisions that benefit members, not simply protecting the institution.

Good governance must be visible in how funds operate day to day. Trustees remain responsible for ensuring that administration arrangements support positive member outcomes.

King V also places increased attention on areas such as technology, data and the responsible use of AI – the tools now shaping how funds communicate, administer benefits and support decision‑making.

CoFi: Coming soon and worth preparing for

When implemented, CoFi will reshape financial regulation around a single core principle: delivering fair outcomes for customers.

Well-governed funds are already preparing. Not because they have to, but because aligning with CoFi principles is good business practice.

Building or reinforcing a culture of fairness, transparency and accountability now is far more effective than scrambling further down the line.

The unifying theme: Members come first

One consistent theme is clear across all these developments.

Retirement funds exist for members – not for processes, not for compliance checklists and not for operational convenience.

In practice, a genuine focus on members requires:

• Communication that is clear, simple and understandable;
• Tools that show the real impact of decisions, not just the mechanics;
• Support at key decision points, especially when withdrawals are considered;
• A focus on outcomes, not just adherence to rules.

Final thought

Q1 2026 brought a lot of change, and its pace is only likely to increase.

As such, funds that integrate these developments into how they serve members will stand out and be ahead of the curve.

At the end of the day, the principle is straightforward: If members are doing better, the fund is doing its job.

ENDS