Two-Pot Withdrawal Calculator South Africa (2026/2027)
Estimate the tax on a two-pot retirement savings withdrawal.
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Last reviewed: Tax year: 2026/2027Source: SARS — Two-pot retirement system
Read the guide: Two-Pot Retirement Withdrawal: How Much Tax Will You Actually Pay?
What the two-pot system changed
From 1 September 2024, South Africa’s retirement fund system was restructured into two separate “pots” for all pension, provident, and retirement annuity fund members. Before this date, most members could not access retirement savings before retirement except by resigning from their employer (and taking the full tax hit) or at retirement.
The two-pot system creates a formal, SARS-regulated mechanism for partial, taxed withdrawal before retirement — without requiring you to exit the fund or lose your vested savings.
The three pots explained
| Pot | How it’s funded | Access before retirement | Tax on withdrawal |
|---|---|---|---|
| Vested pot | All contributions and growth before 1 Sep 2024 | Only by resigning, retirement, or retrenchment (old rules apply) | Previous lump-sum tables (resignation = withdrawal table) |
| Savings pot (⅓) | ⅓ of all contributions from 1 Sep 2024 onwards | Yes — once per tax year, minimum R2,000 | Withdrawal table (starts taxing from R27,500; no R550k exemption) |
| Retirement pot (⅔) | ⅔ of all contributions from 1 Sep 2024 onwards | No — locked until retirement | Retirement lump sum table at retirement (R550,000 tax-free) |
Tax on savings pot withdrawals — not as generous as retirement
Withdrawals from the savings pot are taxed using the retirement fund lump sum withdrawal table — the same table that applies when you resign and take your retirement fund before retirement. This is much less favourable than the retirement lump sum table:
| Taxable amount | Rate |
|---|---|
| R0 – R27,500 | 0% — no tax payable |
| R27,501 – R726,000 | 18% of amount above R27,500 |
| R726,001 – R1,089,000 | R125,730 + 27% of amount above R726,000 |
| R1,089,001 and above | R223,740 + 36% of amount above R1,089,000 |
Compare this to the retirement table below — the R550,000 tax-free threshold at retirement versus just R27,500 for savings pot withdrawals. This is the core reason financial planners advise treating the savings pot as a genuine emergency-only fund, not a source of short-term cash.
| Taxable amount | Rate |
|---|---|
| R0 – R550,000 | 0% — no tax payable |
| R550,001 – R770,000 | 18% of amount above R550,000 |
| R770,001 – R1,155,000 | R39,600 + 27% of amount above R770,000 |
| R1,155,001 and above | R143,550 + 36% of amount above R1,155,000 |
The real cost of a savings pot withdrawal
A savings pot withdrawal is taxed on top of your regular income — it doesn’t replace it. SARS adds the withdrawal to your annual income and calculates the marginal tax due. This means a R50,000 withdrawal for someone earning R500,000/year (already in the 36% bracket) results in roughly R18,000 in tax — you receive R32,000.
Furthermore, every rand withdrawn from the savings pot is a rand that will not compound in a tax-free environment for the next 10–30 years. A R50,000 withdrawal at age 40, compounding at 10% to age 65, would have been worth approximately R541,735 at retirement. That’s the true opportunity cost.
Worked examples
R40,000 savings pot withdrawal, taxable income R360,000/year
Age 38, earning R30,000/month. First-time savings pot withdrawal. Medical aid: 4 members.
- Annual income
- R360,000
- Savings pot withdrawal
- R40,000
- Combined taxable amount for withdrawal
- R400,000
- Marginal rate at R360k income
- 31%
- Tax attributable to withdrawal
- ≈ R12,400
- Net payout
- ≈ R27,600
- Effective rate on withdrawal
- ≈ 31%
R10,000 savings pot withdrawal, low-income earner (R96,000/year)
Age 32, earning R8,000/month. Emergency withdrawal. No medical aid.
- Annual income
- R96,000
- Savings pot withdrawal
- R10,000
- Withdrawal tax table: R10,000 < R27,500 threshold
- Tax = R0
- Net payout
- R10,000
R100,000 savings pot withdrawal, high earner (R1.2m/year)
Age 45, earning R100,000/month. Large emergency. Already withdrawn R30,000 this tax year — this would be refused (one withdrawal per tax year). Calculating on fresh tax year basis.
- Annual income
- R1,200,000
- Savings pot withdrawal
- R100,000
- Marginal rate at R1.2m income
- 45%
- Tax on withdrawal
- ≈ R45,000
- Net payout
- ≈ R55,000
- Opportunity cost (10% for 20 years)
- ≈ R1,083,470 lost at retirement
Rules and limits
| Rule | Detail |
|---|---|
| Minimum withdrawal | R2,000 per transaction |
| Frequency | Once per tax year (1 March to end February) |
| Maximum | Full savings pot balance |
| Fund administrator processing fee | Set by fund — typically R300–R500 |
| SARS approval | Required via Tax Directive before fund can release payment |
| Tax certificate | Fund issues an IT3(a) — include in tax return |
How this calculator works
Enter your annual taxable income, the withdrawal amount (minimum R2,000), your age, and number of medical aid members. The calculator returns the tax on the withdrawal, your net payout, and the effective tax rate — using the same marginal-rate calculation method SARS applies via Tax Directive.
Sources
Frequently Asked Questions
The two-pot system started on 1 September 2024. Generally, one third of the retirement contributions you make from that date goes to your savings pot (accessible before retirement) and two thirds to your retirement pot (locked until you retire). Your balance from before that date stays in the vested pot, which keeps its old rules.
Withdrawals from your savings pot are taxed at your marginal tax rate (your highest bracket). Unlike lump sums at retirement, there is no tax table — the full amount is added to your taxable income.
The minimum withdrawal is R2,000. You can make one withdrawal per tax year (1 March to 28 February). Your fund applies to SARS for a tax directive before paying out.
Consider the long-term cost: money withdrawn loses decades of compound growth. A R25,000 withdrawal at age 35 could cost over R300,000 in lost retirement savings by age 65.
Your fund must get a tax directive from SARS before it pays out, and it deducts the tax on that directive. SARS works from your income on record, so the amount can differ from this estimate. Any difference is settled when you file your return. Your fund may also charge an admin fee on top.
Only the savings pot can be accessed before retirement under the two-pot rules. The retirement pot stays preserved until you retire, apart from limited cases such as emigration or disability. The vested pot keeps the rules that applied before 1 September 2024, so leaving your employer or fund is treated under those rules, not as a savings pot withdrawal.
When the system started, a one-off amount of 10% of your vested balance as at 31 August 2024, up to R30,000, was moved into your savings pot so you could start with something to withdraw. Check your fund statement for your actual savings pot balance.