Two-Pot Withdrawal vs Debt Review Calculator
Before you raid your pension to pay debt, see the real numbers: what you net after tax, what your retirement loses, and what debt review does instead.
Two-Pot Withdrawal vs Debt Review
The accessible amount is 10% of your fund, capped at R30,000, so above about R300,000 the seed stays at the R30,000 ceiling.
Used to estimate your marginal tax rate (the rate your withdrawal is taxed at). Based on SARS 2026 tax tables.
Credit cards, personal loans, store accounts and overdrafts.
Should You Raid Your Pension?
See what a two-pot withdrawal really nets you after tax, what it costs your retirement, and how it compares to handling the debt through debt review instead.
This calculator turns the example in our guide on raiding your pension to pay debt into your own numbers. If your debt is the problem you are trying to solve, debt review almost always beats a pension withdrawal: it clears the whole debt at a lower interest rate and leaves your retirement to keep compounding. You can also check your broader position with our debt review calculator.
Frequently Asked Questions
How much can I withdraw from my pension under the two-pot system?
Only what is in your savings component, once per tax year, with a minimum of R2,000. When the system started in September 2024, your savings pot was seeded with 10% of your vested savings, capped at R30,000. After that it grows by one-third of your ongoing contributions plus investment growth. The calculator uses the conservative 10% seed capped at R30,000 as an estimate of the accessible amount, which is why the figure is usually a small fraction of your total fund.
How is a two-pot withdrawal taxed?
At your marginal income tax rate, because the withdrawal is added to your taxable income for the year. The calculator estimates your marginal rate from your annual income using the SARS 2026 tax tables. SARS also deducts any tax you already owe before paying you, and your fund charges a processing fee, so your actual net amount may be a little lower than the estimate.
Why does the calculator show such a large 'lost growth' figure?
Money left in a retirement fund compounds over time. Money you withdraw stops compounding the day you take it out. The calculator grows the withdrawn amount at about 10% a year over 15 years to show what you give up in future retirement value. The point is simple: a small amount today can be worth several times more by retirement, so withdrawing it is expensive even before you count the tax.
How accurate are these numbers?
They are estimates to illustrate the trade-off, not a precise tax or financial calculation. Your exact accessible amount, marginal rate, rebates, fund fees and growth assumptions depend on your fund and full tax position. Always confirm the retirement and tax specifics with your fund or a financial adviser before making any withdrawal. The debt-review interest and terms are also illustrative and depend on your creditors.
Why is debt review usually the better option?
Because you usually cannot withdraw enough to clear the debt anyway, the money you do take is taxed immediately and stops growing, and the debt itself is left largely intact. Debt review restructures all your debt at a lower interest rate while leaving your pension untouched, so you address the debt without sacrificing your retirement.
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