WHAT IS IT
What is Debt Reset?
Debt Reset is a once-off benefit that helps eligible Discovery Retirement Funds members focus on short-term unsecured debt without withdrawing from their retirement savings, entering debt counselling, or affecting their credit score.
During the relief period, your retirement contributions are temporarily reduced. This increases your take-home pay, which you use to reduce your qualifying short-term unsecured debt. Discovery monitors your aggregated debt balances monthly to confirm that your debt is reducing.
When the relief period ends, your contributions resume. Discovery then adds 100% of the contribution relief you've received back into your boost account, provided you meet the qualifying criteria.
Watch the video: Debt Reset explained
How Debt Reset works in 3 steps
A once-off option to manage short-term unsecured debt using your existing Discovery retirement contributions.
Build stronger financial habits for long-term stability
You start with support. Discovery provides financial education, a session with a financial coach, and a personalised budget to help you prepare for the relief period. This step exists because lasting financial recovery starts with understanding - not just cash flow relief.
Redirect contributions to your debt
Your retirement contributions are temporarily reduced for up to 12 months, capped at a total of R25,000 in contribution relief. You use the extra take-home pay to reduce your qualifying short-term unsecured debt. Your employer does not see your credit data.
We restore what you've missed
When the relief period ends, your contributions resume. Discovery adds 100% of the contribution relief you've received back into your boost account to preserve your retirement outcome, provided you meet the qualifying criteria.
Important note: The standard boost rules will apply - you must make an investment choice, you must be invested in qualifying portfolios, and you must stay invested until retirement.
MORE ABOUT DEBT RESET
Understanding the Debt Reset benefit
Who is Debt Reset for?
Debt Reset is for eligible Discovery Retirement Funds members who have short-term unsecured debt and want to repay it faster without withdrawing from their retirement savings.
Debt Reset can help if you want to:
- Reduce qualifying short-term unsecured debt.
- Keep your long-term retirement savings plan in place.
- Strengthen your financial resilience through financial education, coaching and budgeting.
Debt Reset is not debt counselling, debt consolidation or a loan. It does not affect your credit score.
What debt qualifies for Debt Reset?
Debt Reset applies to qualifying short-term unsecured debt listed on your credit report. This may include debt such as credit cards, personal loans and retail accounts.
Prescribed debt is typically not listed on your credit report and would not be included for this benefit.
How much relief can you access?
Eligible members can access up to R25,000 in contribution relief over a period of up to 12 months.
The exact amount and period will depend on your retirement contribution level, your qualifying short-term unsecured debt and the programme rules that apply.
Use the Debt Reset calculator
Use the Debt Reset calculator to estimate how much short-term debt you could pay off and how your retirement savings could be restored afterwards.
The calculator uses information such as your total short-term unsecured debt, monthly debt repayment and the annual interest rate on your debt.
This helps you understand how Debt Reset may support your short-term debt repayment and long-term retirement savings path.
What makes Debt Reset different
Breaking the cycle of debt
"For decades, employee benefits have focused on helping people save for retirement. Debt Reset addresses a reality many employees face today: it is incredibly difficult to save for the future when debt is consuming your present. By helping employees break that cycle, we believe Debt Reset represents an important evolution in workplace financial wellbeing."
Guy Chennells
Chief Commercial Officer: Discovery Corporate and Employee Benefits
Get retirement back on track
Nearly 40% of South Africans expect to miss at least one bill or loan repayment, around 80% of South Africans are experiencing financial stress and severe short-term financial stress is trapping South Africans in a cycle of debt. This stress is driving short-term decisions, such as two-pot withdrawals, that undermine long-term financial security.
Debt Reset addresses this through Discovery's shared-value model. When members stay invested, reduce debt responsibly, and avoid withdrawals that erode their future, value is created within the system (individuals who have limited short-term debt have a 40% higher net savings rate). The boost is how Discovery returns that value - a reward for employees doing the right thing.
Why employers are considering the Debt Reset benefit
Discovery Corporate and Employee Benefits data highlights the financial pressure many South African employees are facing. Between September 2024 and June 2025, 21% of eligible Discovery Retirement Fund members who accessed their Two-Pot savings component used it to pay off short-term debt, making it one of the most common reasons for withdrawing. Home and car expenses were the only category cited more often.
Debt Reset becomes available when an employer participates in Discovery Retirement Funds and activates the benefit. It provides a practical way to support employees who are dealing with short-term unsecured debt while keeping the process simple and confidential.
Debt Reset can help employers:
- Support employees who are dealing with short-term debt.
- Encourage better long-term savings behaviour.
- Offer practical financial wellbeing support through the retirement fund.
- Help employees reduce debt without debt counselling or credit score impact.
- Support a more focused and financially resilient workforce by helping employees manage a key source of financial pressure
The Debt Reset Benefit is available to eligible members of participating employers who have activated it within Discovery Retirement Funds. Employers can contact Discovery Corporate and Employee Benefits to find out how to activate the benefit for their organisation.
What you need to know about Discovery Debt Reset
No. The Debt Reset Benefit is not debt counselling. It is a Discovery programme that helps eligible members use temporary contribution relief to reduce qualifying short-term unsecured debt. It does not affect your credit score.
No. The Debt Reset Benefit is not a loan. It is temporary contribution relief that helps you use extra take-home pay to reduce qualifying short-term unsecured debt.
The Debt Reset Benefit is designed to help prevent a permanent reduction in your retirement savings. When your relief period ends, Discovery adds 100% of the contribution relief you've received back into your boost account, provided you meet the qualifying criteria.
Once your contribution relief period ends and your normal contributions resume, if you meet the qualifying criteria, the full value of the contribution relief you received will be paid back into your boost account over the following two months, helping you get back on track towards your original retirement savings goal.
Important note: The standard boost rules will apply - you must make an investment choice, you must be invested in qualifying portfolios, and you must stay invested until retirement.
Important note: The standard boost rules will apply - you must make an investment choice, you must be invested in qualifying portfolios, and you must stay invested until retirement.
If you have exhausted all your restarts, you will no longer qualify for the programme and will be opted out. If you have restarts remaining, you will need to restart the three-month stabilisation period. Once completed, you will be eligible for any remaining contribution relief.
The successful use of the Debt Reset Benefit is a once-off opportunity for Discovery Retirement Funds members.
No. The Debt Reset Benefit is not debt counselling and does not affect your credit score.
Discovery tracks your aggregated short-term unsecured debt balances monthly for monitoring. Your employer will not have access to this data.
Yes, if you have worked for you current employer for a specified minimum period and the Debt Reset Benefit is active.
If your unsecured debt reduces to zero, your contributions will be restored. You will receive a boost based on the contributions you have missed during the contribution relief period, provided you meet the qualifying criteria.
No. Your employer will not have access to your personal debt data. Discovery monitors your aggregated short-term unsecured debt balances monthly for programme purposes.
Temporarily reducing your retirement contributions may increase your taxable income during the relief period. The interest you save on your debt and the boost may help offset the short-term tax impact, depending on your circumstances.
Yes, Discovery Retirement Fund members can still withdraw from their two-pot savings while using the Debt Reset Benefit.