How to Claim Two Pot: A Beginner’s Guide to the 2‑Pot Retirement System

Introduction

South Africa’s two pots system is a groundbreaking reform that lets you access a portion of your retirement savings before full retirement, without resigning from your fund. In this guide we will cover how to claim two pot.

Launched under the Revenue Laws Amendment Bill, this two pot system takes effect from 1 September 2024, and splits your retirement contributions into a “savings pot” and a “retirement pot”.

1. What Is the Two Pot System?

Also known as the 2 pot retirement system, it divides your accumulated retirement savings into three components:

• Savings Pot: ⅓ of all contributions, accessible from age 55 (or earlier under hardship).
• Retirement Pot: ⅔ of contributions, locked until retirement.
• Vested Pot: Existing pre‑implementation savings remain intact until normal retirement.

This reform aims to give you greater flexibility while preserving long‑term retirement income.

2. Latest updates: How to Claim Two Pot

• Effective Date: 1 September 2024.
• Calculator Launch: SARS released a Two‑Pot Retirement System Calculator on eFiling, MobiApp and WhatsApp to estimate your savings‑pot withdrawal.
• Tax Directive Enhancements: SARS updated IBIR‑006 specifications (Version 6.707 & 6.708) to streamline tax directive issuance and de minimis checks.

3. Key Related Terms

• Provident Fund South Africa & Government Pension Fund: Broad umbrellas for funds governed by the Pension Funds Act.
• GPF Pension: Government employees’ pension scheme; its members will also transition to the two‑pot system.
• Vested Pot: Your pre‑existing savings component, untouched until retirement.

4. Why Claim from Your Savings Pot?

1. Financial Flexibility: Access up to ⅓ of contributions for major expenses (home deposit, education, emergencies).
2. Tax Efficiency: Withdrawals are taxed at personal income rates, often favorable for lower‑earning members.
3. No Resignation Needed: You stay employed and retain full retirement benefits in your retirement pot.

5. How to Check Provident Fund Status

Before applying, confirm your fund and balance:

1. Old Mutual SuperFund Login
   • Visit Old Mutual’s SuperFund portal and log in with your credentials.
   • Navigate to “My Funds” to view your savings and retirement pot balances.
2. Provident Fund Claim Online Portals
   • Many administrators (e.g., Alexander Forbes, Momentum) offer online dashboards.
   • Use your ID and member reference to access up‑to‑date statements.

6. How to Claim Two Pot Withdrawals Online

Follow these steps to claim two pot savings:

1. Ensure Tax Compliance:
   • Register for tax if you haven’t. Use SARS eFiling, MobiApp, WhatsApp (0800 11 7277), USSD (1347277#) or SOQS.
   • Submit outstanding returns and clear any SARS debt.
2. Obtain a Tax Directive:
   • Your fund will apply to SARS for a directive. Ensure correct annual remuneration is declared to avoid nil directives.
3. Submit Your Two‑Pot Withdrawal Application:
   • Use your fund’s member portal to request a savings‑pot withdrawal form.
   • Complete and upload the form, attaching needed ID and bank details.
4. Receive Funds:
   • SARS issues the tax directive within days.
   • Your fund pays the net amount directly to your bank account.

7. How to Claim Provident Fund & Government Pension Benefits

The process mirrors the two‑pot claim but for full retirement benefits:

• How to Claim Provident Fund:
  1. Submit claim via your fund’s portal or paper forms.
  2. Provide certified ID, bank statement, proof of address.
  3. Complete SARS compliance check.
• Government Pension Fund (GPF Pension):
  1. Apply through the Government Pensions Administration Agency (GPAA) website.
  2. Upload necessary documentation.
  3. Track your pension status via the GPAA portal.

8. Tips & Best Practices on how Claim Two Pot

• Check Your Vested Pot: Understand how much remains locked until retirement.
• Plan Tax Impacts: Use the SARS two‑pot calculator to project your tax liability.
• Keep Records Updated: Ensure SARS and your fund have your current contact and banking details.
• Stay Informed: Follow SARS updates for enhancements or regulatory changes.

Conclusion

The two pot system revolutionizes retirement savings in South Africa, offering unprecedented access to a portion of your funds without sacrificing long‑term security. By following this guide—checking your provident fund status, ensuring tax compliance, and submitting an online provident fund claim—you can confidently claim two pot savings and optimize your retirement planning.