R 1 725 / month
future nominal monthly income sacrificed
R 402 / month
monthly sacrifice in today's money
Retirement toolsTwo-Pot Withdrawal True Cost Calculator
What could a withdrawal give you now, and cost you later?
See the estimated cash in your pocket today, then make the retirement capital and income you give up visible.
01 Estimate cash now02 Measure future cost03 Test repeated withdrawals
01
Your withdrawal
Start with the amount you are considering.
The simple estimate uses your gross salary to approximate the tax on a savings-component withdrawal.
Refine the tax estimateAdd retirement contributions, other income or an actual SARS directive rate+
- Taxable income before withdrawal
- R 600 000
- Allowable retirement contribution
- R 0
- Estimated withdrawal tax rate
- 36%
03
The repeat effect
One withdrawal can be costly. A habit compounds the cost.
These scenarios repeat the same gross amount annually, only if that amount is available in the savings component each year.
Each annual amount is assumed to be withdrawn at the start of that year. Tax, fees and future savings-component availability are not projected in this comparison.
Estimated capital sacrificed at retirementNominal future rand
R0R 1 809 617R 3 619 235
R 4 758 / month
future nominal monthly income sacrificed
R 1 109 / month
monthly sacrifice in today's money
R 7 312 / month
future nominal monthly income sacrificed
R 1 704 / month
monthly sacrifice in today's money
R 12 064 / month
future nominal monthly income sacrificed
R 2 811 / month
monthly sacrifice in today's money
04
How this estimate works
Make the tax and the opportunity cost visible.
The withdrawal affects both today's cash flow and tomorrow's retirement income. The calculator keeps those two views separate.
We estimate normal income tax before and after adding the savings withdrawal to annual taxable income, using the selected tax year and age rebates. An entered directive rate overrides this estimate.
Estimated cash equals the gross amount removed, less estimated tax, the entered fund administration fee and the entered SARS debt deduction.
The full gross amount removed, not only the cash received, grows at the entered investment return for 25 years.
The future capital loss is discounted by the entered inflation rate to express its approximate purchasing power today.
Future capital sacrificed is multiplied by the 4% drawdown assumption and divided by 12.
The same gross withdrawal is modelled at the beginning of each year. The comparison does not predict future savings-component balances, tax, fees or salary changes.
Assumptions used
- Investment return after fees
- 9% a year
- Inflation
- 6% a year
- Retirement drawdown
- 4% a year
- Tax year
- 2026/2027
Change long-term assumptions
Important before withdrawing
- A savings-component withdrawal is generally available once per tax year, subject to fund and product rules.
- The general minimum is R2 000 and the maximum is the available savings-component balance.
- The withdrawal is taxed through the income-tax system, not the retirement lump-sum tax table.
- Your fund may charge an administration fee, and SARS may deduct outstanding tax debt.
- Once the fund sends the directive application to SARS, the decision may be final.
- This calculator does not collect an identity number, tax number or retirement-fund details.
Confirm the actual amount, fee and tax directive with your fund and SARS. Read the SARS Two-Pot Retirement System guidance and the SARS tax-directive explanation.
Important: This calculator provides general financial education and an illustrative estimate only. It is not tax, retirement or financial advice. Actual tax directives, fund fees, savings-component values, investment returns, inflation and retirement income can differ. Consider alternatives and obtain appropriate advice before using retirement savings.