Two-pot withdrawals: how much will you actually get?
Figures for the 2026/27 tax year. Prime rate checked 1 October 2026; tax tables and fees checked 30 September 2026. By AfroTech.
Since 1 September 2024, part of your retirement savings sits in a "savings pot" that you can withdraw from before you retire. But the withdrawal is taxed, often more heavily than people expect. Here's what you'll really get.
The rules in brief
- One-third of new retirement contributions goes into your savings pot; the rest is locked in your retirement pot.
- You can withdraw once per tax year, with a minimum of R 2 000.
- The withdrawal is added to your income for the year and taxed at your marginal rate.
- Your fund deducts the tax, any money you owe SARS, and its own admin fee before paying you.
A worked example
Thandi earns R 25 000 a month and withdraws R 20 000. Her salary already puts her in the 26% tax bracket, so the whole withdrawal is taxed at that rate:
| Amount | |
|---|---|
| Withdrawal | R 20 000 |
| Tax | −R 5 200 |
| Thandi receives | R 14 800 |
Before any admin fee your fund charges, and any SARS debt.
What you'd receive at different salaries
| Your salary per month | Tax on a R20 000 withdrawal | You receive | Tax rate on the withdrawal |
|---|---|---|---|
| R 8 000 | R 3 060 | R 16 940 | 15% |
| R 15 000 | R 3 600 | R 16 400 | 18% |
| R 25 000 | R 5 200 | R 14 800 | 26% |
| R 40 000 | R 6 200 | R 13 800 | 31% |
| R 60 000 | R 7 800 | R 12 200 | 39% |
| R 100 000 | R 8 200 | R 11 800 | 41% |
Under 65, no other deductions, 2026/27 tax tables.
The more you earn, the more of your withdrawal goes to SARS. If you have no other income this tax year, a R 20 000 withdrawal falls under the tax threshold and is tax-free.
Watch out for bracket creep
A large withdrawal can push part of your income into a higher bracket. Someone earning R 30 000 a month who withdraws R 30 000 pays R 8 145 tax, because part of the withdrawal is taxed at 31% instead of 26%. Withdrawing only what you need keeps more of it out of the higher bracket.
The real cost: your retirement
The tax is only part of the cost. Money left in your fund keeps growing until you retire. If Thandi is 35 and leaves the R 20 000 invested until 65, it could grow to about R 86 439 in today's money, assuming growth of 5% a year above inflation. She gives that up for R 14 800 now.
When a withdrawal can make sense
- A genuine emergency, where the alternative is expensive debt such as a payday loan or credit card arrears.
- Paying off debt that charges a much higher interest rate than your fund is likely to earn.
- A year when your other income is low, for example after losing your job, because the withdrawal is taxed at a lower rate.
Before you apply, make sure your tax returns are up to date and you don't owe SARS anything. SARS deducts any debt from the payout.
Try it with your own numbers. The ZARWise calculator uses the same figures as this page.
Work out your own withdrawal