Two-pot withdrawal tax
See the tax on a savings-pot withdrawal, the cash you receive, and what it is worth if left invested.
Updated for the 2026/27 tax year. Free, no sign-up needed.
How the calculation works
From 1 September 2024, new retirement contributions split one third into a savings component and two thirds into a retirement component. You can withdraw from the savings component while you are still a member. SARS calls that payment a savings withdrawal benefit.
The tax is the extra income tax for the year. We calculate tax on your taxable income, then tax on that income plus the withdrawal, using the 2026/27 brackets and the rebate for your age on 28 February. The difference is the tax. A withdrawal that crosses a bracket is taxed partly at each rate, so it is not always the marginal rate times the amount. It is not taxed on the retirement lump-sum tables.
A withdrawal of R20 000 on R300 000 of income, under 65, costs R5 200: the whole amount sits in the 26% bracket. The same R20 000 costs R7 200 at R600 000 (36%) and R8 200 at R1 200 000 (41%). The age rebate does not change these three, because it is the same with or without the withdrawal.
Three rules apply to an ordinary withdrawal. It must be at least R2 000 before any fund charge. You may take only one from that fund in a tax year (one per contract, for a retirement annuity or preservation fund). It cannot be more than the savings component. There is no other maximum. If you leave the fund and less than R2 000 remains, that balance can be paid out even when it is below the minimum.
The fund asks SARS for a directive and withholds tax before paying you. The directive uses the same difference of tax, on the income SARS has on file, and outstanding SARS tax can be deducted from the payout. Medical tax credits and other deductions are not in this estimate. Any difference is settled when you are assessed. You have to be registered for income tax before the fund can apply.
The figure for money left invested grows the amount at the example return after the example annual fund fee. It is an illustration, not a forecast of your fund. This page is for education only. It is not tax, financial or investment advice, and it is not the directive SARS will issue to your fund.
Questions people ask
How is a two-pot savings withdrawal taxed?
It is added to your taxable income for the year and taxed at your marginal rate. The tax is the difference between your income tax with the withdrawal and without it, on the 2026/27 SARS brackets, after the rebate for your age. It is not taxed on the retirement lump-sum tables. SARS calls the payment a savings withdrawal benefit.
How much can I withdraw, and how often?
At least R2,000 before any fund charge, and only once per tax year (1 March to 28 February) from each fund, or from each contract in a retirement annuity or preservation fund. You cannot take more than the savings component. There is no other maximum. The once-off seeding of 10% of your 31 August 2024 fund value, capped at R30,000, is not an annual limit. If you leave the fund and less than R2,000 remains, that balance can still be paid out.
Why does my age change the tax?
Everyone gets the primary rebate (R17,820 for 2026/27). From 65 you also get the secondary rebate (R9,765), and from 75 the tertiary rebate (R3,249). Age is taken on the last day of the tax year. The rebates can wipe out the tax on a withdrawal that stays under the threshold: R99,000 under 65, R153,250 from 65, and R171,300 from 75.
What does the "if left invested" figure mean?
It is an example, not a forecast. It grows the amount you typed at the return you enter, after the example annual fund fee, and assumes the growth stays inside the fund. Growth inside a retirement fund is not taxed while it stays there. Your fund's actual fee and return will differ. The fee is not a SARS charge and is not taken off the cash you would receive.
Will my fund pay me exactly this?
Not necessarily. The fund withholds tax from a SARS directive, which uses the same difference of tax on the income SARS has on file. Outstanding SARS tax can be deducted before you are paid, and you must be registered for income tax before the fund can apply. Medical tax credits and other deductions are not in this estimate. Any difference is settled when you are assessed.
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Estimates use the SARS tables for the 2026/27 tax year and the assumptions shown. They are for planning only and are not tax or financial advice. For a submission, use your actual figures or speak to a registered tax practitioner.