How is my Two-Pot Savings Pot withdrawal taxed?

Savings Pot withdrawals are added to your taxable income for the year and taxed at your marginal rate (18% to 45%). This is different from retirement lump sums, which use the more favourable SARS retirement lump sum tax table.

What is the minimum Two-Pot withdrawal amount?

The minimum Savings Pot withdrawal is R2,000. You can only make one withdrawal per tax year (1 March to 28 February).

How much does my fund charge for a Two-Pot withdrawal?

Most South African retirement fund administrators charge a flat admin fee of R300 to R600 per withdrawal. The calculator defaults to R350 — check your specific fund (Momentum, Old Mutual, Investec, Sanlam, 10X, etc.) for the exact amount.

Why does the calculator show the tax on the whole amount rather than a lower rate?

A Savings Pot withdrawal is added to your annual income for tax purposes, so the whole amount is typically taxed at your marginal rate. Splitting the withdrawal across two tax years would not normally lower the total tax paid if your income stays similar — you would just pay the marginal rate in each year.

Is it better to take a Savings Pot withdrawal or wait for retirement?

Leaving funds in the Retirement Pot until retirement is almost always more tax-efficient. The first R550,000 of retirement lump sums is tax-free, and the remaining brackets (18%, 27%, 36%) are lower than marginal income tax rates. A Savings Pot withdrawal should usually only be used for genuine emergencies.

Does the calculator account for SARS age-based rebates?

Yes. The calculator applies the 2026/27 primary rebate of R17,820, plus the secondary rebate of R9,765 for taxpayers aged 65 and older, and the tertiary rebate of R3,249 for those 75 and older.

Does the Savings Pot grow by itself?

Yes, the Savings Pot is invested the same way as your Retirement Pot and grows with investment returns. New contributions are also split one-third to Savings and two-thirds to Retirement.

Can I withdraw from the Retirement Pot before retirement?

No. The Retirement Pot (two-thirds of new contributions plus growth) is locked until retirement age and must be used to purchase an annuity at retirement.

What was the R30,000 seed capital?

When the Two-Pot System started on 1 September 2024, 10% of each member's Vested Pot (capped at R30,000) was transferred to their Savings Pot as a one-off opening balance.

Where does the 'opportunity cost' number come from?

We project the withdrawal amount forward to retirement age using a 5.5% real return (balanced retirement fund long-term average, net of inflation). Figures are in today's rands, so you can compare like-for-like with a current withdrawal. Past returns are not a guarantee of future returns.

Is this calculator financial advice?

No. This tool is for informational purposes only. MyFinHealth is not a registered financial advisor. Please consult a qualified financial advisor or your retirement fund administrator before making a withdrawal decision.

How current are the tax brackets in this calculator?

The calculator uses the SARS 2026/27 tax brackets, rebates, and thresholds published in the 2026 National Budget Tax Guide. We review and update the underlying data file every March after the Budget Speech.

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