Thousands of Old Mutual fund members submitted savings pot withdrawal claims within days of the two-pot system launching on 1 September 2024. Many received less than they expected. Some experienced delays. A few got caught out by FICA documentation that was not up to date on their Old Mutual profile.
An Old Mutual two pot withdrawal is genuinely accessible, and Old Mutual has built a digital process to handle it, but there are specifics you need to know before you apply. This article covers the full process: where to apply, what Old Mutual needs from you, how long it takes, what SARS deducts, what the fees look like, and the mistakes that cost members time and money. Whether you are in Old Mutual SuperFund through your employer or you hold a personal retirement annuity with Old Mutual, the information here is specific to your situation.
Where and How to Apply for an Old Mutual Two Pot Withdrawal
Old Mutual processes savings pot withdrawal claims through two main channels, depending on your product type.
If you are a member of an employer-linked fund administered by Old Mutual, such as Old Mutual SuperFund or a bespoke employer pension or provident fund, your starting point is the Old Mutual Member Portal at member.oldmutual.com. You can also use the Old Mutual app. Log in using your member number or South African ID number, find the savings pot section, and follow the withdrawal request process from there. Some employers have integrated HR systems that link to Old Mutual, so check with your HR or payroll team if you are unsure which portal applies to you.
If you hold a personal retirement annuity with Old Mutual, the process runs through the Old Mutual website or via your financial advisor. Your advisor can submit the request on your behalf if you have given them the necessary mandate on your policy.
In both cases, Old Mutual requires valid FICA documentation before paying out. You need a valid South African identity document or smart ID card, proof of residential address not older than three months (a bank statement, utility bill, or municipal rates statement works), and your South African bank account details in your own name. If your FICA is already current on your Old Mutual profile, you will not need to resubmit it. If it has lapsed or was never updated, the payment will be held until you supply the outstanding documents. This is one of the most common causes of delays.
What Happens After You Submit: The SARS Directive Process
Once Old Mutual receives your complete application, the process moves to SARS. Old Mutual cannot pay you without a tax directive from SARS, which confirms the withholding tax rate applicable to your withdrawal based on your projected annual income for that tax year.
Old Mutual submits the directive application electronically. SARS typically responds within two to five business days, though this can take longer during high-volume periods. After receiving the directive, Old Mutual deducts the applicable tax and its administration fee, then pays the net amount into your nominated bank account. The full cycle from submission to payment takes between five and ten business days under normal conditions.
Your bank account must be in your own name. Old Mutual will not pay into a third-party account. Capitec, Nedbank, ABSA, Standard Bank, and FNB all work without any specific restriction. If you recently changed banks and your Old Mutual profile still reflects old banking details, update them before applying.
The Tax on an Old Mutual Two Pot Withdrawal: What SARS Actually Deducts
This is the part that surprises most people. SARS taxes your Old Mutual two pot withdrawal as ordinary income in the year you withdraw. Not at a flat rate. At your marginal income tax rate, applied to your withdrawal amount on top of your other income for that tax year.
Here is what this looks like with real numbers. Say you earn R18,000 per month, giving you annual income of R216,000. You apply for a R25,000 savings pot withdrawal. Old Mutual adds R25,000 to your projected annual income, bringing it to R241,000. The marginal rate on that portion is 31 percent under the 2025/26 SARS tax tables. SARS instructs Old Mutual to withhold approximately R7,750, leaving you with R17,250 before the administration fee.
A lower income example: you earn R8,000 per month (R96,000 annually) and withdraw R10,000. Your projected income becomes R106,000. The marginal rate on the R10,000 addition is 26 percent. SARS withholds around R2,600, leaving you with approximately R7,400 before Old Mutual’s fee.
These are estimates. Your actual tax depends on your total income, your deductions, your tax code, and any other income sources SARS is aware of. If Old Mutual withholds too much based on SARS’s directive, you will receive a refund when you file your annual tax return. If SARS underestimates your income and the withholding is too low, you may owe additional tax at year end. This is particularly worth watching if you have income from multiple sources or you are self-employed alongside an employer-linked fund.
Old Mutual Two Pot Withdrawal Fees and What They Cover
Old Mutual charges an administration fee for each savings pot withdrawal transaction. The fee is deducted from your savings pot balance before the net payment is made to you, alongside the SARS-withheld tax. The exact fee depends on which Old Mutual product you are in.
For Old Mutual SuperFund members, the fee is set out in your fund’s benefit statement and the fund rules. For retirement annuity holders, it is documented in your product terms. As a guide, fees across the South African industry for savings pot withdrawal processing range from R100 to R500 per transaction. Contact Old Mutual or check your product schedule if you want to confirm the specific amount before applying.
The fee is not negotiable and is not waived for small withdrawals. Given that the minimum withdrawal is R2,000, paying a R300 fee on a R2,000 withdrawal represents 15 percent of your gross amount before tax. On a R20,000 withdrawal, the same fee represents 1.5 percent. The proportional impact matters, especially if you are considering a small withdrawal.
Withdrawal Rules and Pot Comparison for Old Mutual Members
| Feature | Savings Pot | Retirement Pot | Vested Pot |
| Access while employed | Yes, once per tax year | No | No |
| Minimum withdrawal | R2,000 | N/A | N/A |
| Tax on early withdrawal | Marginal income tax rate | Not accessible early | Withdrawal lump sum table |
| Seed on 1 Sept 2024 | 10% of vested pot, max R30,000 | No seed | Existing balance |
| On resignation | Cash out or transfer | Must transfer | Cash out or transfer |
| At retirement | Included in lump sum | Purchase annuity (min two thirds) | Included in retirement benefit |
The retirement pot is the larger of the two active pots. Two thirds of every new contribution builds it. Old Mutual locks it until you formally retire or reach your fund’s retirement age, typically 55. At retirement, the retirement pot must be used to purchase an annuity product for at least two thirds of its value, in line with the Pension Funds Act. Old Mutual offers both living annuities and guaranteed life annuities for this purpose.
Mistakes Old Mutual Members Make Before and After Withdrawing
In practice, what most fund members find is that the after-tax amount they receive is meaningfully lower than their savings pot balance suggested. The balance on your statement is the gross figure. After SARS and Old Mutual take their shares, the actual deposit can be 25 to 35 percent lower depending on your income bracket.
A common situation we see is members applying for a withdrawal without checking whether their FICA on their Old Mutual profile is current. If your address or ID document has not been verified recently, Old Mutual places a hold on the payment. This is frustrating when you need the money quickly. Log in to your Old Mutual profile at least a week before you plan to apply, confirm your FICA status, and update any expired documentation before submitting your claim.
Another mistake is treating the savings pot as a recurring cash reserve. The once-per-tax-year rule is firm. If you withdraw in August 2025, your next available withdrawal is from 1 March 2026. Members who plan to use their savings pot twice in twelve months discover too late that the second withdrawal is not possible within the same tax year. Plan your withdrawal timing with this limit in mind.
A third error involves members who hold both an Old Mutual employer fund and a separate Old Mutual retirement annuity. Each product has its own savings pot. Each allows one withdrawal per tax year. This means you can technically withdraw from both in the same tax year, but both withdrawals are added to your taxable income. The second withdrawal may push your marginal rate higher than you expected. Do the tax calculation across both before applying.
Finally, some members confuse Old Mutual’s legitimate withdrawal process with third-party services marketing two-pot cash access. If a company offers you your Old Mutual savings pot money before Old Mutual or SARS has been involved, it is almost certainly a loan against an anticipated withdrawal, not an actual fund payment. These products carry their own interest costs and risks. Go through Old Mutual’s official channels directly.
Frequently Asked Questions
How long does an Old Mutual two pot withdrawal take?
From the date Old Mutual receives your complete application with up-to-date FICA documentation, the process typically takes five to ten business days. Old Mutual submits a tax directive to SARS, which responds within two to five business days in most cases. Once the directive is received, Old Mutual processes the payment into your bank account within one to two business days. Incomplete documentation or SARS backlogs can extend this timeline.
Can I make more than one Old Mutual two pot withdrawal per year?
You are limited to one savings pot withdrawal per tax year, per fund. The tax year runs from 1 March to 28 February. If you hold more than one Old Mutual product (for example, an employer fund and a personal retirement annuity), each product counts separately, so you can withdraw from each once per tax year. Each withdrawal is added to your taxable income for that year.
What if SARS has a tax debt against my name? Will Old Mutual still pay me?
SARS can instruct Old Mutual to withhold part or all of your savings pot withdrawal to settle outstanding tax debt under the Tax Administration Act. Old Mutual applies for the directive and SARS responds with either a standard rate or an instruction to redirect funds to settle the debt. If you have outstanding SARS debt, resolve it or get a payment arrangement in place before applying for a withdrawal. Checking your SARS eFiling profile first will save you a wasted application.
What happens to my Old Mutual savings pot if I resign?
On resignation, your savings pot can be paid out to you in cash. SARS taxes this at your marginal income tax rate for that year. Alternatively, you can transfer the savings pot to a preservation fund or your new employer’s fund. Your retirement pot and vested pot must be transferred to a preservation fund, new employer fund, or retirement annuity. Old Mutual offers preservation products that can receive these transfers and keep your retirement savings intact.
Read more: How to withdraw from Momentum two pot system
The most important step before an Old Mutual two pot withdrawal is knowing what you will actually receive, not just what your balance shows. Calculate the after-tax amount using your marginal rate, factor in Old Mutual’s administration fee, and make sure your FICA documentation is current so nothing holds up your payment. If the net amount still meets your need and you have considered the long-term cost of withdrawing early, the process is straightforward and Old Mutual’s digital platforms make it accessible. Use it deliberately, not reflexively. For a full picture of how SARS applies tax to savings pot withdrawals across different income levels, see our breakdown of two-pot withdrawal tax rates for the 2025/26 tax year.
This article is for informational purposes only and does not constitute financial advice. Tax rules and fund regulations may change. Speak to a registered financial advisor or visit sars.gov.za for guidance specific to your situation.
