How to Withdraw From Two-Pot Retirement: Step-by-Step Guide 2026

What You Need to Know Before You Start

Minimum withdrawal: R2,000

Frequency: Once per tax year (March to February)

Tax: Deducted at source (20% withholding, final amount depends on your marginal rate)

Processing time: 7-21 business days (depending on your fund)

Step 1: Check Your Savings Pot Balance

Contact your retirement fund administrator (usually via their website, app, or call center) and request your current Savings Pot balance.

Common administrators:

• Old Mutual
• Sanlam
• Allan Gray
• 10X Investments
• Liberty
• Discovery

Your employer will also have this information (check your latest benefit statement).

Step 2: Request Withdrawal From Your Fund

Most funds now allow online withdrawals. Here's how:

1. Log in to your fund's member portal (website or app)
2. Navigate to "Two-Pot" or "Savings Pot Withdrawal"
3. Enter the amount you want to withdraw (minimum R2,000)
4. Provide your banking details (if not on file)
5. Submit the request

If your fund doesn't offer online withdrawals:

• Download the "Savings Pot Withdrawal Form" from their website
• Fill it in, sign, and submit via email or fax
• You'll need certified ID and proof of banking details

Step 3: SARS Tax Directive

Your fund will automatically apply for a tax directive from SARS. This tells them how much tax to deduct.

What SARS does:

• Checks your income for the current tax year
• Calculates your marginal tax rate
• Issues a directive (usually 20% withholding upfront)

You don't need to do anything — your fund handles this automatically.

Note: The final tax amount is settled when you submit your annual tax return. If too much was withheld, you get a refund. If too little, you pay the difference.

Step 4: Wait for Payment

Timeline:

• SARS tax directive: 2-7 business days
• Fund processing: 3-10 business days
• Payment to your account: 1-3 business days
• Total: 7-21 business days (average: 10-14 days)

You'll receive an SMS/email when the payment is processed.

Step 5: Check Your Payslip & Tax Certificate

After the withdrawal:

• Your fund will send you a tax certificate (IRP5/IT3b) showing the withdrawal amount and tax deducted
• Keep this document — you'll need it for your annual tax return
• The withdrawal does NOT appear on your payslip (it comes from your retirement fund, not your employer)

Common Questions

What if I don't have R2,000 in my Savings Pot?

You cannot withdraw. The minimum is R2,000. You'll need to wait for future contributions to accumulate (one-third of your monthly contributions go to the Savings Pot).

Can I withdraw more than once per year?

No. The law allows one withdrawal per tax year (March to February). If you withdraw in March 2026, you can only withdraw again after March 2027.

Will my employer know I withdrew?

Not directly. But your fund administrator may notify them as part of record-keeping. It won't affect your employment.

Do I have to withdraw the full Savings Pot balance?

No. You can withdraw any amount between R2,000 and your full Savings Pot balance.

What if SARS rejects my tax directive?

Rare, but if it happens, your fund will contact you for more information (usually missing tax number or ID mismatch). Resolve it via eFiling or call SARS directly.

Should You Actually Withdraw?

Before you proceed, consider:

• Tax hit: You'll lose 20-45% to tax (depending on your income bracket)
• Lost growth: R30,000 withdrawn now = R180,000+ lost over 20 years (at 10% annual growth)
• Emergency fund: If you don't have 3-6 months' expenses saved, use this money for that — not discretionary spending

Only withdraw if:

• You've been retrenched and need emergency funds
• You have high-interest debt (>15% APR) and no other way to pay it off
• You face a medical emergency not covered by insurance

Never withdraw for:

• Holidays
• Electronics
• Christmas spending
• Home renovations (unless critical repairs)

Resources

• Complete Two-Pot Retirement Guide
• Two-Pot Withdrawal Calculator
• SARS eFiling Portal