The Government Employees Pension Fund (GEPF) has announced that applications for the 2026/2027 two-pot savings withdrawals are now open
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The Government Employees Pension Fund (GEPF) has reopened applications for the 2026/2027 two-pot savings withdrawals, but members are being warned: you only get one shot per tax year.
The applications had briefly closed at the end of February to allow the fund to process all 2025/2026 withdrawals, but are now open again.
According to the fund, the one-withdrawal rule is designed to prevent applications submitted late in a tax year from being processed in the next, which could unintentionally block members from claiming another withdrawal.
"This measure also helps prevent a situation where an application submitted before the end of the 2025/2026 tax year is only processed in the 2026/2027 tax year.
If this were to happen, the withdrawal could be treated as the member’s 2026/2027 tax-year withdrawal, which may unintentionally make the member ineligible to submit another savings withdrawal during 2026/2027," the fund said.
The two-pot system is a retirement savings structure that allows members to access a portion of their savings without cashing out their entire pension.
It was introduced in September 2024 under the Revenue Laws Amendment Bill, giving members more flexibility to manage short-term financial pressures while still preserving the bulk of their retirement funds.
Since the two-pot system was introduced in 2024, it has proven extremely popular.
The South African Revenue Service (SARS) last year revealed that over 2.6 million taxpayers applied for tax directives to access their savings, with more than R43 billion paid out.
"The South African Revenue Service (SARS) wishes to announce that to date it has received 2,664 279 applications for tax directives for withdrawals from the Savings Withdrawal Benefit of the two-pot system.
Of the total number of applications, 2,403,379 tax directives were approved for funds to be released. The remainder were declined for a variety of reasons, including incorrect Identity Numbers, incorrect tax numbers, amongst others".
While the two-pot system has proven popular, the Public Servants Association (PSA) has previously warned members against withdrawing from their pension savings.
"Drawing from retirement savings prematurely can significantly reduce the amount available for retirement, potentially leading to financial instability eventually. Members must weigh the immediate benefits against the long-term consequences on their financial security post-retirement.
"Most significantly, members should be aware of the tax implications associated with accessing funds from the two-pot system. Withdrawing from your pension savings at this stage, you will be taxed at a marginal rate"
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