Two-Pot Balances
How qualifying values, minimum limits, tax and fees affect a savings-pot withdrawal.
Two-Pot Guidance
How the values work
From 1 September 2024, 10% of a member’s retirement savings as at 31 August 2024, capped at R30,000, was allocated to the savings component. A withdrawal can generally be made only where the available savings-component value is at least R2,000.
R20,000 example: A fund credit of at least R20,000 on 31 August 2024 would create a 10% seed of R2,000, before tax and administration fees.
Members with less than R2,000 must wait
One-third of new contributions is directed to the savings component and two-thirds to the retirement component. The savings balance must grow to the legislated minimum before a withdrawal can be processed.
Expect deductions
- The withdrawal is taxable.
- An administration fee may be deducted.
- A valid tax number is required.
- Each withdrawal reduces money available at retirement.
The savings component is intended for serious financial need. Always consider the long-term effect on retirement savings.
Check the tax effect before applying
The SARS calculator can help estimate tax on a withdrawal.