Q: What was the opening balance of my savings pot?
A: On 1 September 2024, the opening balance, or seed capital of your savings pot was calculated as 10% of your fund value, to a maximum of R30 000. This was a once-off amount and no further seeding will be done.
Q: Can I again withdraw R30 000 (10% of Fund Value) from 1 March?
A: No, the opening balance of 10% of your fund value to a maximum of R30 000 was a once-off event. You can withdraw from your savings pot once per tax year. As long as the value is more than R2 000 on 1 March, then you can withdraw whatever the value is.
Q: How do I grow my savings pot?
A: Your savings pot will grow with your contributions and investment interest on the value in your savings pot. One-third of every contribution you make towards the Fund is allocated to your savings pot. For example, if your contribution is R600 per month, R200 will go towards your savings pot and R400 to your retirement pot. One way to grow your savings pot quicker is to pay additional voluntary contributions towards the Fund. This must be arranged through your HR/wage department.
Q: Why is my savings pot so low?
A: The value of your savings pot is determined by your contributions less any withdrawals you make. One way to grow your savings pot quicker is to pay additional voluntary contributions towards the Fund. This must be arranged through your HR/wage department.
Q: How much money can I withdraw?
A: The minimum amount you can withdraw is R2 000. There is no withdrawal limit – you can withdraw the full amount in your savings pot.
Q: How many times a year can I make a withdrawal?
A: You can withdraw once per tax year (1 March – 28 February). You may be able to withdraw a second time in a tax year if you terminate membership of the Fund and your savings pot has less than R2 000.
Q: How do I apply to withdraw from my savings pot?
A: You need to complete a claim form and submit it to the Administrator together with a copy of your ID and proof of your bank details. You have to also supply your income tax number and annual salary. If you do not have a tax number, then you must first register at SARS. The claim form can be found at https://www.transfin.co.za/two-pot-system-communication/.
Q: Where can I send my withdrawal claim?
A: Please email your claim form and supporting documentation to twopot@transfin.co.za.
Q: Will I be taxed on my withdrawal?
A: You will be taxed according to your marginal tax rate, which is the tax you pay on your annual salary. SARS have provided a savings pot tax calculator at https://tools.sars.gov.za/sarsonlinequery/Savings-Pot-Calculator. The tax rates for 2025 are:
| TAXABLE INCOME (R) | TAX RATE |
| 0 – R 237 100 | 18% |
| R 237 101 – R 370 500 | 26% |
| R 370 501 – R 512 800 | 31% |
| R 512 801 – R 673 000 | 36% |
| R 673 001 – R 857 900 | 39% |
| R 857 901 – R 1 817 00 | 41% |
| R 1 817 001 and above | 45% |
Q: Is there a transaction fee payable?
A: There is a transaction fee of 2% of the savings withdrawal value. For example, a withdrawal of R2 000 will have a transaction fee of R40 and on a withdrawal of R10 000 it will be R200. The transaction fee is capped at R750. This will be deducted from your withdrawal before payment.
Q: How long will it take to process and finalise my withdrawal?
A: We estimate that the process will take 4-6 weeks, provided all required information is correct and your tax affairs are in order. Furthermore, processing of your claim may be affected by the volume of claims that we receive.
Q: What is meant by annual salary?
A: This is the gross income you receive in a tax year, i.e. your income before tax and other deductions. It is what you would put on your tax return to SARS and should include any income you may receive from multiple sources. It also includes any bonuses or allowances that form part of your income. It is very important that you do not understate your annual income. SARS may penalise you with additional tax if they find that you have done so.
Q: Can I change my mind about withdrawing after submitting my claim?
A: You can change your mind up until the point that we apply for a tax directive. According to SARS, the withdrawal process cannot be stopped once we apply for the tax directive.
Q: I belong to more than one Fund. Can I only withdraw from one savings pot per year?
A: You can make a withdrawal from each fund in a tax year.
Q: I am a deferred member. Will I be included in the two-pot system?
A: Yes, however, your savings pot will only have the opening balance of 10% of your fund credit to a maximum of R30 000 plus any future investment returns. There will be no further monthly contributions unless you rejoin the fund and start contributing again.
Q: I am a deferred member and already withdrew an amount from my savings pot. Can I withdraw again in the new tax year?
A: You will only be able to withdraw if you did not withdraw your full value previously and if your savings pot is more than R2 000. As you are deferred, your savings pot will not be growing with contributions, but only with investment returns (if you have not already withdrawn the full value). If you want to grow your savings pot you will have to rejoin the Fund and become a contributing member again.
Q: I am a pensioner. Will I be included in the two-pot system?
A: No. Pensioners are not part of the two-pot system.
Q: Can I access my retirement pot before retirement?
A: No. Your retirement pot cannot be accessed before retirement, even if you are retrenched. Your retirement benefit must be preserved until retirement at which time you must use the full value to purchase a pension/annuity.
Q: Will a withdrawal from my savings pot affect the R550 000 I can withdraw tax-free on retirement?
A: No. The R550 000 tax-free retirement amount is only affected by withdrawals made from any retirement fund before 1 September 2024 and any severance benefits received from an employer. The savings pot is taxed on your marginal tax rate and will not affect the R550 000.
Q: Can I transfer money between different pots in the same fund?
A: You can transfer from the savings pot to the retirement pot and from the vested pot to the retirement pot (intra-fund transfer). These transfers cannot be reversed. You cannot transfer to the vested pot or the savings pot.
Q: I have emigrated. Can I withdraw my funds?
A: You can withdraw any funds in your retirement and savings pot only if you have been a non-South African tax resident for three continuous years. Your vested pot will be dealt with according to the rules in place before 1 September 2024.
Tax-specific questions (the below information comes from SARS)
Q: Must I be registered for tax to make a two-pot withdrawal?
A: Yes. A tax directive will not be granted without a valid tax reference number. Please check if you are registered for tax before you request a tax directive.
Q: Will SARS issue a tax directive if I have any outstanding returns?
A: No. To check if you have outstanding returns, use SARS eFiling; the SARS Online Query System (SOQS); or you can dial *134*7277# and select option 3.
Q: What happens if I owe SARS?
A: SARS will first deduct from your savings withdrawal payout to settle any tax debt. You have the following options to check if you owe SARS money:
- Send an SMS to SARS on 47277 and ask for a balance statement or statement of account. You can use this service without data/airtime.
- Use the SARS USSD channel: dial *134*7277#
- Log on to SARS eFiling and request a statement of account.
- Log on to the SARS MobiApp and request a statement of account.
Q: Will SARS issue a Tax Directive if my personal information is outdated on the SARS system?
A: No, please ensure that your personal information (ID number/Passport number) is up to date and corresponds with SARS information).
Q: Can I cancel my withdrawal application?
A: No. Once your retirement fund sends your withdrawal directive application to SARS, your decision to withdraw becomes final.
Q: Will members earning below the tax threshold be able to withdraw without tax being deducted if their withdrawal does not take their taxable income over the threshold?
A: While taxable income can only be determined accurately during the annual filing season, SARS will attempt to determine the amount of tax on the withdrawal as accurately as possible. Depending on the circumstances it is, therefore, possible for a R0 directive to be issued.
