Practical guide
The Two-Pot Retirement System Explained
Under the two-pot retirement system, new qualifying retirement contributions are divided between a savings component and a retirement component. Existing vested rights and individual fund rules also matter.
Fact checked and updated 13 September 2026
How new contributions are divided
A simplified planning split sends one-third of qualifying new contributions to the savings component and two-thirds to the retirement component. The vested component generally preserves amounts and rights built up before implementation, subject to the rules.
Savings withdrawals
Access to the savings component is controlled by minimum amounts, timing, fund processes and tax. A withdrawal reduces money available for long-term growth and the amount received can be lower after tax and fees.
Use the calculator carefully
Use the contribution split calculator to understand new allocations, not to predict a final withdrawal or fund statement. Confirm balances, eligibility, tax directives and transaction fees with the fund and SARS.
Use the related calculators
Apply the explanation above with your own figures. Open a calculator below, check every input and review the result assumptions before making a decision.
Official source checked
This guide was checked against SARS Two-Pot Retirement System. Rules, rates and institutional requirements can change, so confirm time-sensitive information at the official source.