Two-Pot Savings Withdrawals: What SARS Actually Takes
South Africa’s two-pot retirement system, introduced by the Revenue Laws Amendment Act 12 of 2024 and in force since 1 September 2024, split retirement fund savings into three components. Everything saved before that date sits in a vested pot under the old rules. From that date, one-third of each contribution flows into a savings pot you can access before retirement, and two-thirds into a retirement pot that stays locked until you retire. To start members off, funds transferred a once-off seeding amount into the savings pot: the lesser of 10% of the vested component or R30,000.
The rules on access are strict but simple. You may make one withdrawal per fund per tax year, of at least R2,000, up to your full savings pot balance. And the tax treatment catches many people off guard: the withdrawal is added to your taxable income and taxed at your marginal rate, not under the retirement lump-sum tables. A teacher earning R300,000 a year sits in the 26% bracket, so a R15,000 withdrawal loses R3,900 to tax — net payout R11,100. A manager earning R900,000 is in the 41% bracket and gives up R6,150 of the same R15,000. Compare that with retiring: the lump-sum table taxes the first R550,000 at 0%. Every rand withdrawn early swaps a potentially tax-free payout later for a fully taxed one now.
The process runs through SARS. Your fund administrator applies for a tax directive; SARS works out the tax based on your income on record, adds any outstanding tax debt you owe, and instructs the fund what to deduct. If you have unpaid assessments or penalties, they come off your payout first — a common reason payouts arrive smaller than expected. Directives usually process within a few business days, with payout timing depending on your administrator.
The deeper cost is compounding. At a 10% annual return, R15,000 left invested becomes about R38,900 in ten years and R100,900 in twenty. This calculator shows the directive tax at your marginal rate using the 2026/2027 tables, your net payout, and exactly what the withdrawal costs your future self — before you click “withdraw” on your fund’s portal.
Frequently Asked Questions
How is a two-pot savings withdrawal taxed?
The withdrawal is added to your taxable income for the year and taxed at your marginal rate — between 18% and 45%. Your fund applies for a tax directive from SARS, deducts the directed tax plus any outstanding SARS debt, and pays you the balance. It is not taxed under the favourable retirement lump-sum tables with their R550,000 tax-free band; those only apply at retirement.
What is the minimum two-pot withdrawal amount?
R2,000 per withdrawal. There is no upper limit other than your available savings component balance, but you may only make one savings withdrawal per tax year (1 March to end February).
How many times can I withdraw from my savings pot?
Once per tax year per fund. The South African tax year runs from 1 March to 28/29 February. If you withdrew in November 2025, your next opportunity opened on 1 March 2026. Unused balance simply stays invested and carries over.
How was my savings pot seeded when the system started?
On 1 September 2024, funds transferred a once-off seeding amount into each member’s savings component: the lesser of 10% of the vested component or R30,000. After that, one-third of ongoing contributions flow into the savings pot and two-thirds into the retirement pot, which stays locked until retirement.
Why did I receive less than the calculator showed?
SARS deducts any outstanding tax debt from the withdrawal before payout, on top of the directive tax. Your fund administrator may also charge a processing fee. If your employer under-deducted PAYE during the year, the directive can also push you into a higher bracket than expected.
What does a savings pot withdrawal really cost me at retirement?
Far more than the tax. At a 10% annual return, R15,000 withdrawn today would have grown to roughly R38,900 in 10 years and R100,900 in 20 years. You also lose the chance to take that money at retirement under the lump-sum tables, where the first R550,000 is taxed at 0%.
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