The two-pot retirement system splits your retirement contributions into two parts from 1 September 2024 onwards. One third goes into a savings pot you can access before retirement, and two thirds go into a retirement pot preserved until you retire. You can withdraw from the savings pot once per tax year, the minimum is R2,000, and there is no maximum beyond your balance. The withdrawal is added to your income and taxed at your marginal rate, so you receive less than you request. Money you saved before 1 September 2024 sits in a separate vested pot under the old rules. You apply through your retirement fund, not directly through SARS.
The three components
| Component | What it is | When you can access it |
|---|---|---|
| Vested pot | Everything saved before 1 September 2024 | Under the old fund rules, for example on resignation |
| Savings pot | One third of contributions from 1 September 2024 | Once per tax year, minimum R2,000 |
| Retirement pot | Two thirds of contributions from 1 September 2024 | At retirement, used to provide a pension |
When the system launched, 10 percent of your vested savings, capped at R30,000, was moved into your savings pot to give you an opening balance. That seeding was a one-time event, so there is no second transfer from your old savings.
How the savings pot withdrawal works
You can make one withdrawal per tax year, and the tax year runs from 1 March to the end of February. If you withdrew at any point after 1 March, you cannot withdraw again until the next tax year begins. Your savings pot balance must be at least R2,000 for a withdrawal to go through, and any unused balance stays invested and keeps growing.
The tax treatment is the part most people get wrong. A savings pot withdrawal is added to your taxable income for the year and taxed at your marginal rate, which ranges from 18 to 45 percent. It does not get the tax-free portion that applies to retirement lump sums, so tax comes off from the first rand. Your fund also charges an administration fee, and if you owe SARS money, that debt is deducted too.
How to withdraw, step by step
- Check your savings pot balance on your fund’s member portal or latest statement, and confirm it is at least R2,000.
- Make sure your banking details and tax number are up to date with your fund, because outdated details are the main cause of failed or delayed payments.
- Complete your fund’s savings withdrawal form and submit it, entering the amount you want and your bank details.
- Your fund requests a tax directive from SARS, which calculates the tax at your marginal rate. This usually takes a few working days.
- Your fund deducts the tax and any SARS debt, then pays the net amount into your bank account. The full process commonly takes about five to ten working days.
You do not contact SARS yourself. The fund handles the directive, and SARS confirms the tax to be withheld.
What changed in Budget 2026
Two retirement changes took effect on 1 March 2026. The annual tax deduction cap for retirement fund contributions rose to R430,000, its first increase since 2016, and the threshold below which you can take your full retirement fund as a cash lump sum rose to R360,000. Confirm these against the SARS Budget 2026 material before relying on them, as tax figures are set annually.
Common problems and what they mean
If your payout is far smaller than you asked for, it is because tax, the fund’s admin fee and any SARS debt all come off the gross amount. Someone who requests R30,000 may receive noticeably less once their marginal rate is applied, so decide your withdrawal based on the net amount you actually need.
If your withdrawal is rejected or stuck, the common causes are a savings pot below R2,000, outdated banking or tax details, or an outstanding tax matter. SARS will not issue a tax directive if you have unfiled returns, so bring your returns up to date first.
If you owe SARS and are in arrears, that debt is deducted from your withdrawal, unless you already have a formal payment arrangement in place. You can check what you owe by requesting a statement of account through SARS eFiling or the MobiApp.
Think carefully before withdrawing. Every rand you take out stops compounding, and the long-term cost to your retirement is usually far larger than the cash you receive today, which is why the savings pot is meant for genuine emergencies.
FAQ
How much can I withdraw from my two-pot savings?
Any amount from R2,000 up to your full savings pot balance, once per tax year. There is no fixed maximum beyond what you have saved.
How is the two-pot withdrawal taxed?
It is added to your income for the year and taxed at your marginal rate, from 18 to 45 percent, with no tax-free portion. Your fund deducts the tax before paying you.
How long does a two-pot withdrawal take?
Usually about five to ten working days, once your fund requests the tax directive from SARS and pays out the net amount.
Can I withdraw from my two-pot more than once a year?
No. You can make one savings pot withdrawal per tax year, which runs from 1 March to the end of February.
Do I have to withdraw from my savings pot?
No. Withdrawing is optional. If you leave it, the balance stays invested and grows, and it can be added to your retirement money later.
What happens to my two-pot money when I retire?
Your retirement pot must be used to provide a pension, while any remaining savings pot balance can be taken then, taxed under the more favourable retirement rules.
What to watch
The Budget 2026 retirement changes took effect on 1 March 2026, and the next set of tax figures will be announced in the 2027 Budget, usually in February, effective 1 March 2027. Each new tax year on 1 March also resets your once-a-year withdrawal, which is why claim volumes spike every March. Any further reform to the system would change the rules above.
