Two-pot withdrawal tax calculator
Withdrawals from your retirement savings pot are taxed at your own income tax rate. See what lands in your account, and what the money could have grown to.
You'll receive about
R 14 800
From a R 20 000 withdrawal. Tax takes R 5 200 (26%).
- To you R 14 800
- Tax R 5 200
What it costs your retirement
Left invested until 65, R 20 000 could grow to about R 86 439 in today's money over 30 years.
Assumes growth of 5% a year above inflation, which is an illustration, not a forecast. Actual returns vary.
Before you apply
| Any money you owe SARS | Deducted first |
| Outstanding tax returns | Must be filed |
| Time to be paid | Usually days to a few weeks |
Your fund asks SARS for a tax directive before paying. SARS can issue it within 48 hours if your tax affairs are in order.
How the two-pot system works
Since 1 September 2024, one-third of new retirement contributions goes into a savings pot you can access before retirement. The other two-thirds goes into a retirement pot that stays locked until you retire. Savings from before that date sit in a separate vested pot.
You may withdraw from the savings pot once per tax year, with a minimum of R 2 000. You apply through your fund, not through SARS.
How it's taxed
The withdrawal is added to your income for the year and taxed at your marginal rate, the same rate as your last rand of salary. That's usually much higher than the tax on a retirement lump sum, which is why it pays to withdraw only what you need.
Your fund deducts the tax before paying you. When you file your return, SARS checks the final amount, so you may owe a little more or get a little back.
Read the guide: Two-pot withdrawals: how much will you actually get?