South Africa’s Two-Pot system may allow eligible retirement-fund members to access money from their Savings Component without resigning. Check the basic requirements and see what could remain after SARS tax and possible fund fees.
✓ Check whether you may be able to request a Two-Pot withdrawal
✓ Understand the R2,000 minimum and once-per-tax-year rule
✓ See what may reach your bank account after tax and possible fees
Free South Africa Two-Pot check
CHECK WHAT I MAY BE ABLE TO WITHDRAW >>>Review the requirements on the next page and access the official SARS Two-Pot calculator
The Two-Pot Retirement System changed how eligible members can access part of their retirement savings. Money held in the Savings Component may be available before retirement, which means a qualifying member may not need to resign or cash out an entire pension fund, provident fund or retirement annuity to request a savings withdrawal.
However, the balance shown by a retirement-fund administrator is not necessarily the amount that will arrive in a bank account. A Two-Pot withdrawal is generally taxed at the member’s applicable marginal income-tax rate. Fund administration charges and any tax debt that SARS is instructed to recover may reduce the final payout further.
Checking the possible payout before applying matters because SARS states that once a retirement fund sends the withdrawal directive application, the decision becomes final. The next page helps you review the main requirements and reach the official SARS calculator before you make that decision.
This check may be useful if
You want to know what may be available before you submit a withdrawal request
You belong to a pension fund, provident fund, preservation fund or retirement annuity and want to understand whether its Savings Component may be accessible.
You can see a Two-Pot balance but do not know whether it meets the minimum withdrawal requirement.
You want to understand how withdrawal tax, SARS debt or fund fees could affect the amount paid into your bank account.
You are considering a withdrawal but want to review the rules and possible effect on your retirement savings before applying.
Under the general Two-Pot rules, one withdrawal from the Savings Component is allowed per tax year, subject to a minimum amount of R2,000 and the applicable fund rules. South Africa’s tax year runs from 1 March to the end of February, so this limit is based on the tax year rather than the calendar year.
Tax is another important part of the calculation. Savings withdrawals are added to taxable income and taxed using the rate applicable to the individual. That is why two members requesting the same gross withdrawal may receive different net amounts. The final calculation is determined through the SARS tax-directive process.
A valid tax reference number is required for the directive. Outstanding tax returns may prevent SARS from issuing it, while outstanding tax debt can be deducted from the payout. Checking your tax position and using the official Two-Pot tax calculator can therefore provide more context before your fund submits the request.
Withdrawing can also reduce the amount that remains invested for retirement. A financial adviser or qualified tax professional may help when the decision forms part of wider retirement planning, investment planning, debt management or other long-term financial decisions.
Check the requirements and continue to the official SARS payout calculator
What happens next
Review the rules before requesting your withdrawal
1. Check the basic requirements
Review the fund-membership, available-balance, minimum-amount and tax-year conditions that may apply.
2. Understand possible deductions
Learn how SARS tax, outstanding tax debt and fund administration charges may affect the final amount.
3. Open the official SARS calculator
Use the official SARS Online Query System to obtain an illustrative estimate based on the information available to SARS.
Frequently asked Two-Pot questions
What to know before requesting money from your Savings Component
Can I access part of my retirement savings without resigning?
Eligible members may request money from the Savings Component without resigning or cashing out their entire retirement fund. Access depends on the available balance, applicable legislation and the rules and processes of the member’s fund.
What is the minimum Two-Pot withdrawal?
The general minimum for a Savings Component withdrawal is R2,000 before tax and possible administration charges. If less than R2,000 is available, a member will generally need to wait until the balance reaches the minimum.
How often can a Two-Pot withdrawal be made?
The general rule allows one Savings Component withdrawal per tax year. The South African tax year runs from 1 March to the end of February, which is different from a calendar year.
How is a Two-Pot withdrawal taxed?
A Savings Component withdrawal is generally taxed at the marginal income-tax rate applicable to the member. SARS issues a tax directive telling the retirement fund how much tax to deduct, and the final tax position may be settled during annual assessment.
Will I receive the full balance shown by my fund?
Not necessarily. Tax, fund administration charges and qualifying outstanding SARS debt may reduce the amount paid into your bank account. Your fund can confirm its own charges and processing rules.
Must I be registered for tax?
Yes. SARS states that a valid tax reference number is required before a tax directive can be granted. Outstanding tax returns may also cause a directive application to be rejected until the returns are submitted.
Can I cancel after my fund sends the request to SARS?
SARS states that once the retirement fund sends the withdrawal directive application, the decision to withdraw becomes final. This makes it important to review the likely deductions and long-term effect before applying.
Does withdrawing affect my future retirement savings?
Yes. A withdrawal reduces the amount left invested and may reduce future investment growth. The immediate cash received should therefore be weighed against its possible long-term effect on retirement planning.
Is this website part of SARS or my retirement fund?
No. This is an independent informational website. The next page explains the main requirements and links to the official SARS calculator, while an actual withdrawal application must be made through the relevant retirement fund.
Important before you continue
This is an independent informational website and is not affiliated with SARS, the South African government or any retirement fund. Eligibility, available balances, tax directives, administration fees and payouts are determined by the relevant authorities and fund administrators. Nothing on this page constitutes personalised tax, financial, investment or legal advice.