The 2026/27 tax year started on 1 March 2026 — and with it, every South African with a pension or provident fund has a fresh annual withdrawal allowance from their two-pot savings pot. If you withdrew in 2025/26, you can access the pot again. If you haven't touched it since September 2024, your savings pot has been quietly building for 19 months.
This guide does two things: calculates how much is likely in your savings pot right now, and walks you through the decision framework for whether withdrawing in 2026/27 makes financial sense. The honest answer is: for most people, it doesn't. But there are situations where it does — and this guide helps you figure out which camp you're in.
The two-pot system launched on 1 September 2024. Since then, 1/3 of all new retirement fund contributions have flowed into your savings pot. Here's how to estimate your balance:
Basic formula:
Additionally, on launch day (1 September 2024), 10% of your vested pot balance (capped at R30,000) was "seeded" into your savings pot. This seed capital is already included in most people's current balances.
Here are estimated savings pot balances in April 2026, for people who have not previously withdrawn:
| Monthly Salary | Total Contribution Rate | Monthly Pot Contribution | 19-Month Accumulation | Est. Balance (with growth) |
|---|---|---|---|---|
| R10,000/month | 10% | R333 | R6,327 | ~R7,000 |
| R15,000/month | 10% | R500 | R9,500 | ~R10,500 |
| R20,000/month | 10% | R667 | R12,673 | ~R14,000 |
| R25,000/month | 10% | R833 | R15,827 | ~R17,500 |
| R30,000/month | 10% | R1,000 | R19,000 | ~R21,000 |
| R40,000/month | 15% | R2,000 | R38,000 | ~R42,000 |
| R60,000/month | 15% | R3,000 | R57,000 | ~R63,000 |
| R80,000/month | 15% | R4,000 | R76,000 | ~R84,000 |
Balances include approximately R4,000–30,000 seed capital depending on vested pot size. Growth estimated at 9% annualised. Actual figures will differ based on your specific fund, contribution history, and previous withdrawals.
If you withdrew during 2024/25 (September 2024 – February 2026), your current balance reflects only what has accumulated since that withdrawal, plus any remaining balance you chose not to withdraw.
This is the part most people skip — and then regret. Two-pot savings pot withdrawals are not taxed like retirement lump sums. They are added to your income for the tax year and taxed at your marginal income tax rate. SARS issues a directive to your fund before payment; tax is deducted before you receive anything.
The 2026/27 SARS marginal tax brackets (1 March 2026 – 28 February 2027):
| Annual Taxable Income | Marginal Rate |
|---|---|
| R0 – R237,100 | 18% |
| R237,101 – R370,500 | 26% |
| R370,501 – R512,800 | 31% |
| R512,801 – R673,000 | 36% |
| R673,001 – R857,900 | 39% |
| R857,901 – R1,817,000 | 41% |
| R1,817,001+ | 45% |
To find your marginal rate: take your annual salary, subtract your retirement fund contributions (since those are deductible), and find the bracket your income sits in. The withdrawal amount is taxed at that bracket's rate — not a blended rate.
Here's what different withdrawal amounts produce after SARS takes their share, at various salary levels:
| Annual Salary | Marginal Rate | Withdrawal | Tax Deducted | You Receive | Effective Cost |
|---|---|---|---|---|---|
| R120,000/yr | 18% | R7,000 | R1,260 | R5,740 | 18% lost |
| R180,000/yr | 18% | R10,000 | R1,800 | R8,200 | 18% lost |
| R300,000/yr | 26% | R17,000 | R4,420 | R12,580 | 26% lost |
| R420,000/yr | 31% | R21,000 | R6,510 | R14,490 | 31% lost |
| R550,000/yr | 36% | R30,000 | R10,800 | R19,200 | 36% lost |
| R720,000/yr | 39% | R40,000 | R15,600 | R24,400 | 39% lost |
| R1,000,000/yr | 41% | R60,000 | R24,600 | R35,400 | 41% lost |
The effective cost goes beyond just the tax. The money withdrawn also loses its compound growth potential. R21,000 withdrawn at age 40 from a pot earning 10% annually would have grown to roughly R145,000 by age 65. That's the true cost of a "quick" R14,490 net withdrawal today.
Use this framework to think through whether withdrawing makes sense for you in 2026/27:
Is this for:
If it's the last category, the answer is almost always: don't withdraw.
Before applying for a withdrawal, price out alternatives:
Use the table above or the RetirementSorted calculator to determine exactly what you'll receive. If your savings pot has R14,000 and you're in the 26% tax bracket, you'll receive approximately R10,360. Is that amount sufficient for your need? If not, does it make sense to liquidate retirement savings for a partial fix?
Take your withdrawal amount and apply this rough rule: multiply by 10 to estimate the retirement value you're giving up (assumes 25+ years of compounding at 10%). A R15,000 withdrawal at 40 has a retirement cost of approximately R150,000. Is what you're spending it on worth R150,000 in retirement purchasing power?
Most major SA banks (Standard Bank, FNB, Absa, Nedbank, Capitec) offer unsecured personal loans. At prime-linked rates (currently ~14.25–18%), the interest cost over 12–24 months is often less than the immediate tax deducted from a two-pot withdrawal — especially for middle-income earners in the 31%+ bracket.
TFSA withdrawals carry no tax. The downside: the lifetime contribution limit (currently R500,000) isn't restored — whatever you withdraw, you can never re-contribute. But the absence of a tax directive and immediate tax deduction makes this a much more efficient source of emergency cash if you have it.
Before assuming you need to fund something yourself, check whether your short-term insurance covers it. Home damage, vehicle repairs, and some medical expenses may be claimable. Many South Africans are underinsured and don't realise it.
Medical providers, schools, and many service providers will negotiate payment arrangements. A R15,000 medical bill paid over 12 months at 0% interest is better than a R15,000 two-pot withdrawal that yields R10,350 after tax.
Many larger employers offer employee assistance programmes (EAPs) or payroll loans at subsidised rates. Ask your HR department what's available before going to the market.
If you've worked through the decision and a withdrawal is the right call, here's the process:
The 2026/27 tax year has some specific dynamics worth knowing before you decide:
If you withdrew in 2025/26 (September 2024 – February 2026), you now have a fresh annual allowance. The new tax year means SARS will calculate your directive based on your 2026/27 income — which may differ from your previous year if your salary has changed.
The VAT increase to 16% (effective 1 April 2026) means the purchasing power of your withdrawal is slightly reduced compared to last year. The tax environment hasn't changed dramatically for retirement savers, but the cost of living context has shifted.
The SARS cap on retirement contribution deductions increased to R430,000 for 2026/27 (from R350,000). This means high earners who want to use RAs to reduce taxable income before withdrawing from the savings pot have more room to do so — potentially dropping to a lower tax bracket before the directive is calculated.
Your savings pot receives 1/3 of all retirement fund contributions from 1 September 2024 onwards, plus investment growth. The most accurate way is to check your fund administrator's portal. As a rough estimate: monthly salary × total contribution rate ÷ 3 × number of months since September 2024, plus approximately 9% annualised growth on the accumulated balance.
Your annual savings pot withdrawal allowance resets on 1 March each year. From 1 March 2026, you have a fresh withdrawal allowance for the 2026/27 tax year — even if you withdrew in 2024/25 or 2025/26.
Two-pot savings pot withdrawals are taxed at your marginal rate for 2026/27, ranging from 18% to 45%. Tax is deducted at source via a SARS directive before you receive the money. A R20,000 withdrawal at a 31% marginal rate nets approximately R13,800.
For most mid-to-high earners (31%+ bracket), a personal loan is often cheaper on a total cost basis. A R20,000 personal loan at 18% over 24 months costs ~R4,400 in interest. The same two-pot withdrawal at 31% loses R6,200 immediately in tax — plus long-term compound growth. Do the maths for your specific situation.
Yes — one withdrawal per tax year (March to February) is permitted, provided you have at least R2,000 available. But withdrawing annually compounds the retirement damage significantly. The savings pot is not designed as a recurring income supplement.
The 2026/27 tax year gives you a fresh allowance. That doesn't mean you should use it. The two-pot system was designed as a safety valve for genuine emergencies — not a savings account to be tapped whenever money is tight. If you do have a genuine need, compare alternatives first, calculate your after-tax amount honestly, and understand the long-term compound cost before you apply.
For most South Africans in the 26–39% tax bracket, the alternative will often be cheaper. For those in genuine emergencies or the 18% bracket, the savings pot does what it was designed to do.
Use the RetirementSorted calculator to model your retirement outcome with and without the withdrawal — so you go into the decision with your eyes open.
Related reading: Two-pot tax changes April 2026 · Should you withdraw from your two-pot? · Retirement savings benchmarks: are you on track?