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Many wooden pots with patterns in turquoise blue, cream, brown and black that are symbolic of the upcoming two pot retirement system. Your retirement savings will be split into 2 pots: a savings pot which you can withdraw from and a retirement pot.

Two pot retirement system

Withdrawals, fees, & tax implications

The two-pot retirement system focuses on providing greater flexibility for you in an emergency while balancing your long-time retirement savings. Here is some helpful information:

Savings component calculator

When the two-pot retirement system comes into legislation on 1 September 2024, you can withdraw from your savings pot in case of emergencies. However, it's usually better to keep this money invested - if you don’t withdraw, you’ll have more savings by the time you retire than if you do.

Use our savings component calculator to see how your savings could grow if you keep them invested. It will help you understand the potential benefits of leaving your money invested.

What is the two pot retirement system?

Illustration of 3 clay pots with patterns showing vested component, 1/3 savings component and 2/3 retirement component.

From the proposed date of implementation on 1 September 2024, the two-pot system will change the future of retirement planning in South Africa.

Here's what you need to know:

The vested component: This component is made up of your retirement savings on 31 August 2024. This money will be protected, and the two-pot rules will not apply to it. 10% of your retirement savings or R30 000, whichever is the lowest, will be transferred to the savings component.
The savings component: One third of your contributions from 1 September 2024 will go into your savings component. You can tap into this component once every tax year for an emergency. The minimum withdrawal amount is R2 000 and will be taxed at your marginal income tax rate. You will also pay a processing fee.
The retirement component: Two thirds of your contributions from 1 September 2024 will go into your retirement component. You can only access this component at retirement and must use it to buy a pension.
Black family of three with the little boy on his father’s shoulders and the mother looking at them smiling.

Why is the two-pot retirement system important

  • The two-pot system can help you save more for retirement, protect your retirement savings, and make better retirement planning decisions.
  • The savings component gives you access to some of your retirement savings in an emergency. This can help you avoid dipping into your retirement savings too early, which can reduce the amount of money you have available when you retire.
  • The retirement component is locked away until you retire. This helps protect your retirement savings from being accessed too early or lost due to financial hardship.

Two-pot resource centre

Find all the resources and tools you need to understand how the two-pot system will impact your retirement goals.

Need help?

There are a few ways to get in touch with us. Choose a channel that works best for you.

Unlock our do-it-yourself tools

Speak to a retirement benefit counsellor

Request a call back

Got questions or need clarity? We’re here to help. Click the button below and a financial adviser will call you back.

Request a call back

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