The initial idea for the Two-pot system was to balance short-term financial pressures and long-term retirement planning.
In a perfect world, members should never withdraw any of their retirement savings, but life happens. The Two-pot system allows members yearly access to a third of their savings while two-thirds remain untouched.
Withdrawals are meant to cover emergencies, such as an operation or school fees, and should only be considered once all other options have been exhausted.
When you withdraw from your retirement savings, you are taking money from your future self. Withdrawing money today means you will receive a smaller pension when you retire.
We get it. It’s hard to think of your life 20 or 20 years from now when you have debts to pay today. But before you withdraw, understand what your future self could be losing.
Use the calculator to work out the true cost of a savings withdrawal before you decide.
Two-pot savings withdrawal calculator
Two-pot savings withdrawal calculator
Enter a withdrawal amount of at least R2,000.
Marginal tax bracket
18%
After tax you will receive
R0
Retirement growth lost
R0
If you leave the potential withdrawal amount until age 65, it would grow to
You receive R0 now — but give up R0 in future growth.
Assumed annual growth rate of 8%.
The calculator was created with AI and is for illustrative purposes only. Each person’s financial situation is different. Consult your HR officer, fund administrator or financial advisor to ensure how a withdrawal would affect your long-term savings.
All our content is made possible through the valued support of our Consumer Financial Education (CFE) funding partners.
All content is for general educational purposes and does not constitute formal financial advice. Always consult a qualified, licensed financial professional before making any financial decisions.