Two Pot Calculator South Africa: Estimate Your Savings Pot Withdrawal
Work out how much tax you will pay and what you will actually receive if you withdraw from your savings pot under the two pot retirement system. Enter your savings pot balance, the amount you want to withdraw and your marginal tax rate to get an instant net payout estimate.
Calculate My Withdrawal ↓Savings Pot Withdrawal Calculator
Enter your details below, then press Calculate to see your estimated net payout.
Your Estimated Net Payout
R0
After tax and fees
Withdrawal breakdown
| Component | Basis | Amount |
|---|
This estimate applies your marginal tax rate to your requested savings pot withdrawal.
Under the two pot retirement system, your savings pot withdrawal is taxed at your marginal income tax rate, added to your other income for the year, rather than at the more favourable retirement lump sum rates. The minimum withdrawal is R2,000, you can only withdraw once per tax year, and your fund may deduct a processing fee before paying out. Your net payout is your withdrawal amount minus tax minus any processing fee. Use the calculator above for your own estimate, and confirm your exact figures with your fund administrator or SARS tax directive.
How to Use the Two Pot Calculator
Four quick steps to an estimated net payout.
- 1 Enter your savings pot balance. Check your latest benefit statement or fund member portal for this figure.
- 2 Confirm whether you have already withdrawn this tax year. Only one savings pot withdrawal is allowed per tax year.
- 3 Enter the amount you want to withdraw and your marginal tax rate. These determine your tax and net payout.
- 4 Press Calculate. Your tax, fees, net payout and remaining balance appear instantly, with a full breakdown. Use “Copy Result” to save it.
The Two Pot Withdrawal Calculation Formula
Your savings pot withdrawal is taxed in full at your marginal rate, unlike a retirement lump sum.
Tax on Withdrawal = Withdrawal Amount x Marginal Tax Rate
Net Payout = Withdrawal Amount – Tax on Withdrawal – Processing Fee
Remaining Savings Pot = Savings Pot Balance – Withdrawal Amount
Your marginal tax rate is the rate applied to your last rand of income for the tax year, once your withdrawal is added to your other taxable income. Use our PAYE Calculator or Income Tax Calculator if you are not sure of your bracket.
Worked Examples
Real calculations using the two pot withdrawal formula, so you can see exactly how a net payout is built.
Example 1: R15,000 savings pot, R10,000 withdrawal, 26% marginal rate, no fee
| Withdrawal requested: R10,000.00 | Tax on withdrawal: R2,600.00 |
| Processing fee: R0.00 | Net payout: R7,400.00 |
| Remaining savings pot: R5,000.00 | |
Example 2: R42,000 savings pot, R25,000 withdrawal, 31% marginal rate, R250 fee
| Withdrawal requested: R25,000.00 | Tax on withdrawal: R7,750.00 |
| Processing fee: R250.00 | Net payout: R17,000.00 |
| Remaining savings pot: R17,000.00 | |
Example 3: R6,500 savings pot, R2,000 withdrawal, 18% marginal rate, no fee
| Withdrawal requested: R2,000.00 | Tax on withdrawal: R360.00 |
| Processing fee: R0.00 | Net payout: R1,640.00 |
| Remaining savings pot: R4,500.00 | |
The Two Pot Retirement System: The Complete Guide
The two pot retirement system took effect on 1 September 2024, changing how retirement fund contributions are structured and accessed for members of pension, provident and retirement annuity funds. It was introduced to give members limited access to part of their retirement savings for emergencies, while keeping the bulk of their savings preserved for retirement.
The three pots
| Pot | What it holds | Access |
|---|---|---|
| Vested pot | Retirement savings built up to 31 August 2024 | Governed by the old rules that applied before the reform |
| Savings pot | One third of contributions made from 1 September 2024 onward | One withdrawal allowed per tax year |
| Retirement pot | Two thirds of contributions made from 1 September 2024 onward | Locked until formal retirement |
When the system began, a once-off seed amount, the lesser of 10% of a member’s vested pot value or R30,000, was transferred into their savings pot to give members some immediate access.
Savings pot withdrawal rules
You can make one withdrawal from your savings pot per tax year, which runs from 1 March to the end of February. The minimum withdrawal amount is R2,000, and if your savings pot balance is below R2,000 you will need to wait for further contributions to build it up before you can withdraw anything. Your fund will typically also charge a processing or administration fee, which varies between providers.
How savings pot withdrawals are taxed
Unlike a retirement lump sum at retirement, which benefits from a separate lump sum tax table with a tax free portion, a savings pot withdrawal is added to your other taxable income for the year and taxed at your marginal rate from the first rand. This means a withdrawal can push part of your income into a higher tax bracket, so it is worth checking your likely marginal rate before applying. SARS issues a tax directive to your fund, which deducts the tax before paying out the balance to you.
The retirement pot
Your retirement pot cannot be accessed under any circumstances before retirement, including on resignation, dismissal or retrenchment. It must be preserved, transferred to another approved retirement fund, or used to purchase an annuity when you eventually retire.
What happens at retirement
At retirement, if the combined value of your vested, savings and retirement pots is below R165,000, you may be able to take the full amount as a cash lump sum, subject to the fund rules and the retirement lump sum tax table. Above this threshold, the retirement pot generally must be used to provide a pension or annuity.
Methodology
This calculator applies the marginal tax rate you provide to your requested savings pot withdrawal amount, deducts any processing fee you enter, and shows the resulting net payout together with your remaining savings pot balance.
Assumptions used in this calculator
- This calculator covers savings pot withdrawals only, not vested pot rules or retirement pot benefits.
- You supply your own marginal tax rate, since this depends on your total taxable income for the year.
- Processing fees vary by fund administrator, so the fee field is an estimate you provide.
- This calculator does not issue a tax directive and is not a substitute for one from SARS.
Frequently Asked Questions
It estimates the tax and net payout on a savings pot withdrawal, based on the amount you want to withdraw, your marginal tax rate and any processing fee your fund charges.
Once per tax year. The South African tax year runs from 1 March to the end of February, so if you have already withdrawn in the current tax year, you will need to wait until the next one starts.
It is added to your other taxable income for the year and taxed at your marginal rate, unlike a retirement lump sum which uses a separate lump sum tax table with a tax free portion.
R2,000. If your savings pot balance is below R2,000, you will not be able to withdraw anything until further contributions bring the balance up to that minimum.
No. The retirement pot is locked until formal retirement, including if you resign, are dismissed or are retrenched. It must be preserved, transferred, or used to buy an annuity at retirement.
No. This tool gives a planning estimate based on the marginal tax rate and fee you enter. Your actual payout depends on the SARS tax directive issued to your fund and the fund’s own fee structure, so always check with your fund administrator.