The introduction of the two-pot retirement system has sparked debate about whether retirement funds’ investment strategies should adapt to this new framework. The system aims to balance short-term access to savings with the need for long-term preservation, offering fund members annual access to a portion of their contributions while locking the rest until retirement.

In an interview, Andrew Davison, the head of Institutional Business at Old Mutual Multi-Managers, outlines the competing perspectives shaping this transition. One camp argues for maintaining a long-term investment approach across all savings, discouraging members from tapping into their funds unnecessarily. The other acknowledges that regular withdrawals are likely and…