With the Savings Pot in place, if you face financial difficulties, you may apply to withdraw some or all of the money in your Savings Pot with a minimum withdrawal of R2 000. You may only make one withdrawal per tax year (from 1 March to 28 February) until you retire.

You will be taxed when you make a withdrawal based on your marginal tax rate (which is the rate of tax applicable as if you had received this withdrawal as salary). The fund may also charge an administration fee when making withdrawals.

All contributions made into the Retirement Pot from 1 September 2024, cannot be accessed prior to retirement.

The less you withdraw from your Savings Pot, the more money will be available together with your Retirement Pot to purchase a pension. This will improve your standard of living after retirement as all the funds in your various pots count towards your total retirement savings which will be used to purchase a pension.

Click here for a brochure on 'Understanding the tax implications of Savings Pot withdrawals"