The two-pot system took effect on 1 September 2024 and changed how new retirement-fund contributions are saved. From that date, one-third of every contribution flows into a savings pot you can draw on once per tax year, and two-thirds into a retirement pot locked until retirement age. Pre-September balances became a third pot — the vested pot — which keeps the old rules.
Savings-pot withdrawals are fully taxable at your marginal rate via a SARS tax directive. The minimum withdrawal is R2,000; you can also leave the savings-pot money invested and growing if you don’t need it. Each tax year refreshes a single withdrawal allowance — un-withdrawn savings carry over, but you can’t take two withdrawals in one year.
At retirement, the retirement pot must be used to buy an annuity (living or guaranteed) — only up to one-third can be commuted as cash. The vested pot keeps its pre-2024 deal: full one-third commutation, two-thirds annuity. The savings pot can be taken as cash without restriction.