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South Africa estimate

Two-Pot Retirement Calculator (South Africa)

Split a South African retirement contribution one-third savings / two-thirds retirement and estimate tax on a savings-component withdrawal at your marginal rate.

Source: SARS — two-pot retirement system
Two-Pot Retirement Calculator (South Africa) · ZARetirement & Pensions

Results update when you select Calculate.

Example result based on the prefilled values.

Calculation results
ResultValue
Savings pot

R10 000,00

Retirement pot

R20 000,00

Net withdrawal

R0.00

Tax

R0.00

Continue your plan

Useful next calculations

Related to this calculation

Rates & sourcesfrom 1 Sep 2024

Two-pot split from 1 September 2024: one-third savings component, two-thirds retirement component. Withdrawals from savings are taxed at the rate you enter.

Rates used for from 1 Sep 2024
Band / figureRate
Savings allocation1/3
Retirement allocation2/3
Withdrawal taxmarginal rate entered

Source: SARS — two-pot retirement system — source checked for from 1 Sep 2024.

When to use this calculator

  • Before choosing between saving, investing, or increasing your monthly contribution.
  • When you want to compare best-case, base-case, and cautious return assumptions.
  • When you need a quick projection before making a longer-term portfolio decision.
  • When you are deciding how many more years of contributions are needed to reach a specific target balance.
  • When you want to see whether starting earlier versus contributing more each month produces a bigger outcome.

A realistic South Africa planning example

Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.

A realistic South Africa planning example
InputValue
Contribution this period (R)R250 per month
Savings-component withdrawal (R)R15,000
Marginal tax rate on withdrawal (%)5%

After entering these figures, review savings pot, retirement pot and net withdrawal together rather than in isolation — each metric tells a different part of the story. Then rerun the tool with one input adjusted to see which variable has the biggest effect on all three outputs before you settle on a plan.

How to read your results

Savings pot

Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.

Retirement pot

Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.

Net withdrawal

Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.

Tax

Review this figure alongside gross income and the local tax rules that apply to you. It is a planning estimate, not a filing result or a recommendation to make a tax decision.

Method & assumptionsAuthoritative sources

From 1 September 2024, South African retirement contributions split under the two-pot system: one-third to a savings component and two-thirds to a retirement component. Savings-component withdrawals are allowed (subject to fund rules) and are taxed at your marginal rate. The retirement component stays invested until retirement.

This planner splits a contribution and taxes an optional savings withdrawal at the rate you enter. It does not model the 2024 seed transfer, fund-specific minimums, SARS directives, or the full 2026/27 tax table. Confirm with your fund and SARS. Source: SARS two-pot retirement system.

Common mistakes

  • !Using an assumption that is not supported by a current local quote, bill, statement or official source.
  • !Treating a generic estimate as a lender, provider, payroll or tax authority decision.
  • !Mixing monthly and annual inputs without converting them consistently.
  • !Forgetting location-specific taxes, fees, eligibility rules or payroll deductions where they apply.
  • !Testing only one scenario instead of checking how a cautious assumption changes the result.

What to do next

  • Run a second scenario with a cautious assumption so you can see the downside clearly.
  • Compare the result with the related calculators below before making a decision.
  • Check current local rules, eligibility and provider terms before applying or committing money.
  • Keep a record of the assumptions so you can update the estimate when a quote, bill or pay figure changes.
  • Use the result to prepare better questions for a lender, provider, adviser or employer rather than treating it as a final answer.

Frequently asked

One-third goes to the savings component and two-thirds to the retirement component. This calculator applies that split to the contribution you enter.

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