These simplified examples use the SARS 2027 ordinary retirement-fund withdrawal table and assume no previous relevant lump sums. They are illustrations, not a SARS tax directive.
| Withdrawal | Illustrative tax | Illustrative amount after tax |
|---|---|---|
| R100,000 | R13,050 | R86,950 |
| R250,000 | R40,050 | R209,950 |
| R500,000 | R85,050 | R414,950 |
| R1,000,000 | R199,200 | R800,800 |
Why your actual tax can differ
Previous relevant retirement-fund lump sums can change the result because SARS applies the tables cumulatively. The legal classification of the payment also matters. Two-Pot savings-component withdrawals are not taxed using this table.
Don't compare only the tax
The bigger long-term cost may be the retirement capital that no longer compounds after a cash withdrawal. Compare the immediate cash need with the future value of preserving the money.
Try the calculator and compare preserving versus withdrawing.
Primary sources
For material tax and Two-Pot decisions, check the current rules directly with SARS and your retirement fund. Useful official sources include SARS retirement lump-sum tax tables and SARS Two-Pot guidance.
Before you submit a withdrawal or transfer instruction
Get a free review of the options you are considering. If personalised assistance is appropriate, your enquiry may be referred to an appropriately authorised financial adviser/FSP.
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