Two-Pot Retirement Calculator
Calculate the tax on your SA Two-Pot Savings Pot withdrawal. See your net payout, marginal tax rate, and compare withdrawal scenarios for the 2025/2026 tax year.
How the Two-Pot System Works
From 1 September 2024, retirement fund contributions are split: 1/3 to the Savings Pot (accessible with tax) and 2/3 to the Retirement Pot (preserved). Enter your fund value and planned withdrawal to see exactly how much tax SARS will deduct.
The minimum withdrawal is R2,000 and you may only make one withdrawal per tax year. The Savings Pot withdrawal is added to your income and taxed at your marginal rate.
Two-Pot Tax Calculation Formula
Two-Pot Fund Structure
| Component | Source | Access |
|---|---|---|
| Savings Pot | 1/3 of contributions post-Sep 2024 | Once/year, min R2,000, taxed at marginal rate |
| Retirement Pot | 2/3 of contributions post-Sep 2024 | At retirement (annuity or lump sum) |
| Vested Rights | All contributions pre-Sep 2024 | Per old rules: lump sum at retirement |
Worked Example
Employee: R350,000/year income, withdraws R30,000 from Savings Pot
Combined income: R350,000 + R30,000 = R380,000
Tax on R350,000: R77,362 + 31% × (R350,000 – R370,500) — wait, R350k is in bracket 2
Tax on R350,000 (bracket 2): R42,678 + 26% × (R350,000 – R237,100) = R42,678 + R29,354 = R72,032
Tax on R380,000 (bracket 3): R77,362 + 31% × (R380,000 – R370,500) = R77,362 + R2,945 = R80,307
Tax on withdrawal: R80,307 – R72,032 = R8,275
Net withdrawal: R30,000 – R8,275 = R21,725
Effective tax on withdrawal: 8,275 ÷ 30,000 = 27.6%
Withdrawal Tax Comparison
| Scenario | Gross | Tax | Net | Eff. Rate | Remaining Pot |
|---|---|---|---|---|---|
| Option 1 | R 20 000 | R 6 200 | R 13 800 | 31.00% | R 46 667 |
| Option 2 | R 40 000 | R 12 400 | R 27 600 | 31.00% | R 26 667 |
| Option 3 | R 60 000 | R 18 600 | R 41 400 | 31.00% | R 6 667 |
Fund Projection Table
| Year | Savings Pot | Retirement Pot | Total |
|---|---|---|---|
| Year 0 | R 66 667 | R 733 333 | R 800 000 |
| Year 5 | R 253 890 | R 1 474 085 | R 1 727 975 |
| Year 10 | R 555 414 | R 2 667 074 | R 3 222 489 |
| Year 15 | R 1 041 023 | R 4 588 394 | R 5 629 417 |
| Year 20 | R 1 823 100 | R 7 682 700 | R 9 505 800 |
| Year 25 | R 3 082 643 | R 12 666 110 | R 15 748 753 |