Withdrawal Limits And Rules For Retirement Annuities in SA

Can I withdraw money from a retirement annuity at any time?

No. Under current regulations you may not withdraw any money from your RA until you are 55 years old. However, under the new two-pot retirement system [Jump link to Two-pot section] set to come into effect in March 2024, it is likely you will be able to make an annual withdrawal from the savings pot part of your RA.

When can I withdraw my retirement annuity?

Currently you may only make one withdrawal from your RA: one-third cash at the age of 55. The remaining two-thirds must be invested into a living annuity, life annuity or a hybrid of the two

You may then withdraw one-third in cash. The South African government’s new two-pot retirement system [Jump link to Two-pot section] is set to change this, allowing limited annual withdrawals. However, the bulk of your retirement savings will remain ‘untouchable’ until retirement age and be subject to living annuity/life annuity reinvestment rules.

How many times can I withdraw money from a RA?

Currently you are only able to withdraw a lump sum once: one-third of your retirement annuity savings at age 55. However, South Africa’s new two-pot retirement system [Jump link to Two-pot section], expected to come into effect on 1 March 2024, is set to allow annual withdrawals from the savings pot portion of your retirement annuity.