What this page covers
Quick answer: Since September 2024 a South African retirement fund splits new contributions in two. Key figures: to the savings component 1/3; to the retirement component 2/3; minimum withdrawal R2,000; withdrawal per year 1. Figures current at 27 September 2026, from South African Revenue Service, two-pot retirement system.
Since September 2024 a South African retirement fund splits new contributions in two. One third goes to a savings component you may draw on once a year; two thirds go to a retirement component locked until retirement.
Key findings
- One third of new retirement contributions goes into a savings component that can be withdrawn once a year.
- Two thirds go into a retirement component that must be used to buy an annuity at retirement.
- The minimum withdrawal from the savings component is R2,000, and it is taxed at your marginal rate.
⬇ Download this chart (PNG) · Free to reuse with the credit “Source: TradeAnswers, Two-Pot Retirement System Reference” (CC BY 4.0).
| Component | Where contributions go | Access before retirement |
|---|---|---|
| Savings | One third of new contributions | One withdrawal per tax year |
| Retirement | Two thirds of new contributions | None, must be annuitised at retirement |
| Vested | Everything accrued before 1 September 2024 | Under the old rules |
Source: TradeAnswers, Two-Pot Retirement System Reference. Free to reuse with attribution (CC BY 4.0).
| Item | Rule |
|---|---|
| Frequency | Once per tax year |
| Minimum withdrawal | R2,000 |
| Maximum | The full savings component balance |
| Tax | At your marginal rate, as ordinary income |
| Fee | The fund may charge an administration fee per withdrawal |
TradeAnswers · CC BY 4.0
| Taxable income | Marginal rate | Tax on a R30,000 withdrawal | Net received |
|---|---|---|---|
| R250,000 | 26% | R7,800 | R22,200 |
| R450,000 | 31% | R9,300 | R20,700 |
| R650,000 | 36% | R10,800 | R19,200 |
| R900,000 | 41% | R12,300 | R17,700 |
| R2,000,000 | 45% | R13,500 | R16,500 |
TradeAnswers · CC BY 4.0
How these figures work
The figures on this page come from published sources and change on a schedule rather than continuously, which is what makes them worth recording in one place. A savings withdrawal is taxed as income, not at the retirement lump sum rates. That is the point most people miss: it is the most expensive way to access retirement money short of resigning.
The withdrawal is added to your income for the year, so it can push you into a higher bracket and raise the tax on everything else.
★ A worked example
Reading the tables together is where the value is. Seed capital moved into the savings component at implementation was capped at 10% of the vested balance or R30,000, whichever was lower.
✕ Common mistakes
- A savings withdrawal is taxed as income, not at the retirement lump sum rates. That is the point most people miss: it is the most expensive way to access retirement money short of resigning.
- The withdrawal is added to your income for the year, so it can push you into a higher bracket and raise the tax on everything else.
- Seed capital moved into the savings component at implementation was capped at 10% of the vested balance or R30,000, whichever was lower.
- Taking a figure without its date. A number from a reference page is only as good as when it was last checked, which is why the date sits at the top of this one.
Notes on reading these figures
- A savings withdrawal is taxed as income, not at the retirement lump sum rates. That is the point most people miss: it is the most expensive way to access retirement money short of resigning.
- The withdrawal is added to your income for the year, so it can push you into a higher bracket and raise the tax on everything else.
- Seed capital moved into the savings component at implementation was capped at 10% of the vested balance or R30,000, whichever was lower.
To put these figures to work, the Two-Pot Withdrawal Tax Calculator runs the arithmetic on your own numbers, and Using a two-pot withdrawal for trading capital covers the same ground in ordinary language. Repeat two-pot withdrawals and Retirement Fund Contribution Limits go into the detail this table only summarises. The SARS Income Tax Tables covers the part this table leaves out.
Terms used on this page
See also: Why Are Half of South Africans Cashing Out Retirement Savings When Changing Jobs? and South African Balance of Payments and South African Ombudsman Schemes.
Spotted an outdated figure? If a figure or rate on this page no longer matches its source, email us the page and the source. A material correction is dated on the Updates Log.
How these figures are compiled, checked and corrected: our data methodology.
Cite this page
Barosso, G. (2026, September 27). Two-Pot Retirement System Reference. TradeAnswers. https://www.tradeanswers.co.za/two-pot-retirement-system-reference.htmlBarosso, G (2026) Two-Pot Retirement System Reference, TradeAnswers, figures current at 27 September 2026, https://www.tradeanswers.co.za/two-pot-retirement-system-reference.htmlThe tables and the CSV on this page are free to reuse under a CC BY 4.0 licence: attribution with a link to this page. See the Press & Data Licence page.
Frequently asked questions
How often can I withdraw from the savings component?
Once per tax year, with a minimum of R2,000. The year runs 1 March to the end of February.
How is a savings withdrawal taxed?
At your marginal rate, as ordinary income. It is not taxed on the retirement lump sum table, which is why it is expensive.
Can I access the retirement component early?
No. It is locked until retirement and must then be used to buy an annuity, with limited exceptions.
What is the vested component?
Everything accrued before 1 September 2024. It stays under the rules that applied when it was contributed.
Does a withdrawal affect my tax bracket?
Yes. It is added to your income for the year, so a large withdrawal can push other income into a higher bracket.
Was there an opening balance in the savings component?
Yes, seeded at 10% of the vested balance or R30,000, whichever was lower.
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