Two-Pot Calculator
From September 2024, contributions will be split into a Savings Component (1/3) and a Vested Retirement Component (2/3). The Savings Component can be withdrawn Once per tax year in a financial emergency before retirement, while the Vested Component cannot be accessed until retirement.
Savings Component Calculator
Results
In my savings component: R
Remaining in my vested component: R
Payout Calculator
Results
Tax Deductions and Fees: R0.00
Estimated payout value: R0.00
Disclaimer
Please note that the tax amount provided is an estimate and does not account for any potential rebates related to your income bracket or age. The final tax calculation will be determined by SARS. Fees are product-specific, and the exact tax and fee amounts will be confirmed upon withdrawal.
Frequently asked questions on the Two-pot system
What is the implementation date?
1 September 2024
What will happen on 31 August 2024?
WA Davidson will do a once-off compulsory transfer of 10% of your retirement fund, to a maximum of R30 000, to your savings component. The balance of your retirement fund will remain in your vested component.
How will I know how much money will be transferred to my savings component?
WA Davidson will provide you with a special two-pot provisional benefit statement beforehand giving an indication of what the amount will be. Thereafter, the amount in your savings component will be shown on your annual and provisional benefit statements.
Do I have to withdraw the money transferred into my savings component?
No, this money is meant for emergencies and its best to keep as much money in your retirement fund as possible so that you can retire more comfortably.
When will I be allowed to withdrawal the money transferred into my savings component?
You can only submit an application to withdraw the seed capital in your savings component after 1 September 2024. Thereafter, only one withdrawal from the savings pot can be made per tax year.
The money will not be immediately available as the Fund will need to verify the application and if valid process the application, i.e., verification of banking details, calculation of tax payable, etc., before the money will be paid to you.
How much money will I be able to withdraw?
Seed capital (once-off) withdrawals: The seed capital amount will be taken from your vested pot (contributions plus investment returns earned up to 31 August 2024) and placed in your savings pot on 1 September 2024. The amount that will be made available for you to withdraw is 10% of your retirement savings as at 31 August 2024, limited to a maximum of R30,000. You will not be able to withdraw more than R30,000.
Annual withdrawals: You will be allowed to withdraw all or part (minimum of R2,000) of the amount accumulated in the savings pot once in each tax year.
NB! Tax and administration costs will be deducted from the withdrawal amount, and the balance paid into your bank account.
It is always best to keep as much money in your retirement savings as long as possible so that you can retire more comfortably, and only access the money in your savings component in a financial emergency.
If I have an emergency and need to withdraw from my savings component what do I need to know?
You can withdraw a minimum of R2 000 (before fees and tax) once a tax year while remaining employed. You will be taxed at your marginal tax rate and there will be an admin fee charge.
Can I access my retirement fund if I leave my employer before retirement or am retrenched?
You may only access your savings component and vested component. No withdrawals are allowed from the retirement component until you reach age 55. You can leave this component in the fund or transfer to another retirement fund.
Does my age matter?
Yes, it can matter for provident fund members. On 1 September 2024, provident fund members who were 55 years or older on 1 March 2021 can choose to participate in the two-pot system and split all new contributions between savings and retirement components. Please let WA Davidson know should you wish to do this.
How do I withdraw funds?
Click here initiate a savings claim requestor email us on savingsclaims@wadavidson.co.za. Alternatively, to access the form directly click on the following link: https://dialog.tech/wcYSO4uX
Please note that your tax affairs must be in order the and the fund must have your correct details on record. Including contact details, ID number, Tax number and correct surname.
We require the following documentation to support you claim:
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A certified copy of your ID/Passport
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A certified copy of your bank statement
Once your completed application and supporting documentation is received, the WA Davidson team will validate the information provided and verify that you are eligible to receive a savings component withdrawal. Once approved, your application will be processed within the stipulated withdrawal time period.
How will the tax on a withdrawal from the savings component work?
Every withdrawal you make from your savings component is added to your taxable income and will be taxed at a fixed marginal tax rate at the time of withdrawal. The amount withdrawn therefore increases your taxable income and tax will be payable on the amount withdrawn. The tax will be withheld by the fund administrator.
