Two-pot withdrawals: What you need to know before you claim

The two-pot system lets you access money from your savings pot, subject to the fund rules. Before you claim, it is important to understand how much you can withdraw, what tax and fees may apply, and how this could affect your retirement savings. Claims must be submitted through AF Connect.

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What is the two-pot system?

The two-pot system lets you access money from your savings pot, subject to the fund rules. Before you claim, it is important to understand how much you can withdraw, what tax and fees may apply, and how this could affect your retirement savings.

Claims must be submitted through AF Connect.

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Illustration of two growing plants in pots labeled ‘retirement pot’ and ‘savings pot,’ with money forming leaves and padlock icons indicating secured funds.

How the two-pot system works

From 1 September 2024, retirement savings are split into different “pots”. A once-off amount called seed capital was transferred from existing retirement savings into the savings pot, up to a maximum of R30 000. After that, one-third of ongoing contributions go into the savings pot and two-thirds go into the retirement pot. The vested pot remains separate.

  • You can only claim from the savings pot
  • You can make one withdrawal per tax year
  • The minimum withdrawal amount is R2 000
  • Your savings pot value can go up or down with investment returns

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Learn more about the two-pot system in our free Webinar

Over 55

English

Learn all you need to know about the two-pot system and start planning ahead.

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Under 55

English

Learn all you need to know about the two-pot system and start planning ahead.

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isiZulu

Lungiselela ukwenza izinqumo zezezimali unolwazi.

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isiXhosa

Funda konke okufuneka ukwazi malunga nenkqubo yomhlalaphantsi yeengxowa ezimbini kwaye uqale ukucwangcisa.

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Afrikaans

Berei jou voor om ingeligte finansiële besluite te neem.

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Sesotho

Ithute sohle seo o hlokang ho se tseba ka sistimi ya ho tlohela mosebetsi ya dipitsa tse pedi mme o qale ho re rela pele

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Sepedi

Ithute tšohle tšeo o swanetšego go di tseba ka tshepedišo ya go rola modiro ya two-pot gomme o thome go rulaganya e sa le pele.

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Start your two-pot withdrawal

Log in to AF Connect to check your savings pot balance, submit your withdrawal, and upload any required documents.

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Can you claim from your savings pot?

You may be able to claim if all the following are true:

✔ You have not already made a withdrawal in the current tax year

✔ You have more than R2 000 in your savings pot

✔ Your bank account can be verified as your own

✔ You are registered on AF Connect

✔ Your tax details can be validated

✔ There are no legal or administrative holds on your benefit

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What happens if you withdraw?

Tax and fees apply

Your withdrawal is taxed at your marginal tax rate, and a processing fee is deducted. The amount paid out will be less than the amount claimed. SARS may also deduct outstanding tax.

You may get less than you expect

The savings pot is invested, so its value can rise or fall. The amount available when you claim may change over time.

It can reduce your retirement outcome

Withdrawing now reduces the money available later.

You only get one chance this tax year

Plan carefully. Once you make a withdrawal, you cannot make another savings pot withdrawal in the same tax year.

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Frequently asked questions

What is the Two-Pot Retirement System?

The Two-Pot Retirement System splits your retirement savings into different components:

• A savings pot, which allows limited access before retirement

• A retirement pot, which is preserved until retirement

• A vested component, which applies to savings built up before 1 September 2024

For new contributions, a portion goes into the savings pot and the remainder into the retirement pot.

When did the Two-Pot system start?
The Two-Pot Retirement System came into effect on 1 September 2024.
Can I withdraw from my retirement annuity?

You may withdraw from the savings pot of your retirement annuity, subject to the applicable rules and limits.

The retirement pot and vested component remain preserved until retirement, except in limited circumstances allowed by law.

How often can I withdraw from the savings pot?

You can make one withdrawal per tax year from your savings pot.

The tax year runs from 1 March to the end of February.

Is there a minimum withdrawal amount?
Yes. The minimum withdrawal amount from the savings pot is R2 000.
How is a savings-pot withdrawal taxed?
Withdrawals from the savings pot are taxed at your marginal income tax rate, as determined by SARS.
What happens to my existing retirement savings?
Savings accumulated before 1 September 2024 form part of the vested component and remain subject to the previous rules.
How do I apply for a Two-Pot withdrawal?
You can submit a savings-pot withdrawal request through AF Connect, where you can also track the status of your claim.
Will withdrawing affect my retirement savings?
Yes. Any withdrawal reduces the amount remaining in your investment and may impact the value of your retirement savings over time.
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