SARS reaps billions as South Africans withdraw from two-pot savings

The Two-Pot retirement system has given South Africans greater access to savings, while generating significant tax revenue for SARS through withdrawals from the savings component

South Africans turning to their retirement savings to pay bills and settle debt are also putting billions of rand into the hands of the taxman.

The South African Revenue Service (SARS) has collected billions in tax from members accessing their savings through the Two-Pot retirement system, which was introduced in September 2024 to give members limited access to their retirement savings while keeping most of their money invested for retirement.

Former SARS commissioner Edward Kieswetter revealed last year that the revenue service had collected about R15 billion in tax from Two-Pot withdrawals, while also recovering close to R1 billion in outstanding tax debt from members’ payouts.

The tax take comes as millions of South Africans continue to access their savings. Alexforbes revealed this year that it had processed and paid more than one million Two-Pot withdrawal claims, with the average withdrawal exceeding R14,000.