Can I use one net-worth number to see how long my money will last?

No. Total net worth mixes home equity, locked RA/pension money, TFSA, taxable investments and cash. Accessible balances may have to fund the years before 55; locked retirement balances typically cannot. Use both numbers. Conflating them overstates how close you are.

Is the 4% rule the law in South Africa?

No. It is a planning lens from other markets. South African living annuities have a statutory drawdown band of 2.5%–17.5% a year. That band is a legal range, not a safe-withdrawal rate. 4% sits inside the band; that does not make 4% official.

What does the 2.5%–17.5% living annuity band actually mean?

If you buy a living annuity, the amount you draw each year must stay inside that percentage of the value. 2.5% may not cover expenses. 17.5% may shrink capital quickly. Neither figure is a forecast of how long the money lasts.

Can I use my two-pot savings pot like a TFSA?

No. A savings-pot withdrawal is allowed once per tax year and taxed as income. A TFSA has separate annual (R46,000) and lifetime (R500,000) contribution limits for 2026/27, a 40% excess penalty, and tax-free growth inside the wrapper. Different room, different tax, different job.

If I FIRE at 50, which accounts fund the years before 55?

Typically TFSA and discretionary/taxable investments — the accessible pool. RA, pension and the retirement pot stay locked until access, usually 55. Emergency cash is a buffer. A two-pot savings-pot withdrawal is a taxed, once-a-year option, not the core bridge.

Does Libevyn calculate tax on a two-pot withdrawal?

Yes — a free public two-pot withdrawal calculator is live at /tools/two-pot-withdrawal. It estimates income tax on a savings-component withdrawal for planning (educational only, not a SARS directive). The app also tracks wealth by bucket, accessibility, TFSA room and a FIRE projection that includes two-pot and bridge-period modelling where supported. For directive mechanics and filing surprises, see the two-pot savings withdrawal tax guide. Confirm official figures with SARS or your fund.

When can I access an RA or pension?

Under current rules, retirement funds are typically restricted until 55, with two-pot savings-pot access on its own (once per tax year, taxed as income). Fund type, preservation and product terms matter. A tracker can flag access category. It cannot give a single “locked until” date for every fund.

Should I include my home in the runway?

Include it in total net worth. Do not treat primary-residence equity as years of living expenses unless you have a concrete plan to sell or draw on it. The net worth guide separates total, investable and FIRE views for that reason.

Is Libevyn a financial adviser or an FSP?

No. Libevyn is a tracking and planning tool. It does not provide personalised financial, investment, retirement or tax advice.

Guide

How long will your money last in a South African retirement?

A single net-worth number does not tell you how many years you can fund. Some rands are in a TFSA or a brokerage account you can use this month. Some sit in an RA, pension or provident fund that is typically locked until 55. Two-pot savings-pot money is a third category: it can be taken, but it is taxed as income — it is not a TFSA.

This guide is planning information for the 2026/27 tax year (1 March 2026 – 28 February 2027). It is not a withdrawal instruction, not a forecast, and not financial advice. Libevyn is a South African wealth tracker — not an FSP, not a fund, not SARS. The useful question is: which bucket funds which years, at what access and tax cost, under current rules.

The problem

Forum threads collapse the decision to “R4 million at 4% = R160,000 a year, I’m done.” That US 4% rule is a research lens from other markets and other tax systems. It is not South African law. A living annuity in South Africa has a statutory drawdown band of 2.5%–17.5% a year. Sitting inside that band is a legal range, not proof that 4% (or 7%, or 12%) will last.

The other collapse is treating total net worth as spendable. Home equity, locked retirement money, emergency cash and a two-pot savings pot do not play the same role. Provider apps each show one slice. A FIRE spreadsheet that sums every account into one cell will tell you that you have “enough” — then fail the five years between stopping work at 50 and retirement access at 55.

Two-pot did not fix this. The savings pot is accessible once per tax year and taxed as income. It is not a substitute for TFSA room, and it is not a second emergency fund with tax-free withdrawals.

One net-worth number vs accessible vs locked

Track three views. They answer different questions.

View	What it includes	What it is for
Total net worth	Everything you own minus everything you owe, in ZAR	Balance-sheet truth. Includes home equity, cars, cash, TFSA, taxable, offshore, RA/pension
Accessible	TFSA, taxable local, offshore, cash — subject to product terms	Money that may fund spending before retirement access. Still not “tax-free to spend”
Locked (retirement)	RA, pension, provident, preservation — typically until 55	Part of wealth, usually excluded from an accessible FIRE view until access rules apply

Property equity is wealth. It is not living expenses unless you sell or borrow against it. Emergency cash is a buffer, not five years of spend. Two-pot savings-pot balances sit in a grey band: legally more reachable than the retirement pot, but taxed as income and limited to once per tax year.

Libevyn splits accounts by tax bucket and by accessibility — available, restricted, illiquid — from the account types and balances you enter. That split is a planning view. It does not determine legal access to any asset. For how to assemble the balance sheet, see how to track net worth across EE, RA, TFSA and property .

Why the US 4% rule is a rough lens, not SA law

The 4% rule is a planning shortcut: take 4% of a portfolio in year one, adjust for inflation, hope the balance lasts a few decades. It came out of US historical returns, US inflation, and a US tax wrapper mix. It is not a SARS table. It is not a FSCA instruction. It is not a guarantee.

South Africa is a different problem:

Retirement access is typically 55, not “whenever the 4% number looks big enough.”
A living annuity drawdown must stay inside 2.5%–17.5% of the value each year. That band constrains how fast you may draw; it does not tell you a sustainable rate.
TFSA withdrawals are generally tax-free inside the wrapper, but they do not restore lifetime contribution room (R500,000 cumulative; R46,000 annual for 2026/27).
Taxable accounts can trigger CGT, interest and dividends tax. Those are not reduced to one “4% net” figure here.
RA and pension money follows fund and two-pot rules, then living-annuity or annuity product rules — not a US 60/40 backtest.

4% happens to sit inside the 2.5%–17.5% living-annuity band. That is a coincidence of the band, not a South African safe-withdrawal law. A 17.5% draw is legal in a living annuity and can empty the capital. A 2.5% draw is legal and may not cover expenses. Pick a rate as an assumption to stress-test. Do not treat it as a rule SARS will honour.

Libevyn’s FIRE planner lets you enter a withdrawal-rate assumption, expenses, contributions, and accessible vs retirement balances. The sample illustration on that page uses 4% as an input — an assumption, not a recommendation. For savings-pot withdrawal tax estimates, use the free two-pot withdrawal calculator and the two-pot savings withdrawal tax guide for directive and filing mechanics.

Two-pot: accessible is not tax-free, and it is not a TFSA

Under the two-pot retirement system, new retirement contributions are split. For planning, keep two facts in view:

Savings pot — you may take a withdrawal once per tax year (subject to fund process and any minimums your fund applies). The amount is taxed as income. That is the opposite of a TFSA withdrawal.
Retirement pot — locked until retirement access, typically 55. It is there to fund later years, not the bridge from 50 to 55.

Do not use the savings pot as a TFSA substitute. A TFSA has an annual cap of R46,000 and a lifetime cap of R500,000 across every provider for 2026/27. Exceed either and SARS charges a 40% penalty on the excess. Growth and qualifying withdrawals inside TFSA rules are tax-free. Savings-pot withdrawals are income. Room, tax and access are different products.

If you still have TFSA annual or lifetime room, compare that path against a retirement contribution using the same rand — TFSA vs RA for your next contribution and the free TFSA vs RA calculator. Section 11F still caps the deductible retirement contribution at the least of the statutory tests, including 27.5% and the R430,000 annual rand cap for 2026/27. That is an accumulation rule. It does not unlock the retirement pot early.

Libevyn’s FIRE projection includes two-pot and bridge-period modelling where the application supports it. A free two-pot withdrawal calculator estimates savings-pot tax for planning — educational only, not a SARS directive. For withdrawal rules, directive withholding, and filing surprises, see the two-pot savings withdrawal tax guide .

What to put on the page before “years of runway” means anything

Annual spending you actually expect after leaving full-time work (not your current salary).
Date of birth, so the years to 55 are a number, not a vibe.
TFSA balances and lifetime contributions — withdrawals do not restore room.
Taxable local and offshore balances (offshore converted to ZAR).
RA / pension / provident / preservation, split in your own notes into savings pot vs retirement pot if you have a two-pot statement.
Cash you would spend vs cash you refuse to spend (emergency).
Home equity — include in net worth; exclude from the spend plan unless you have a real sale or access-bond plan.
A withdrawal-rate assumption, stated as an assumption. 4% is one lens. The living-annuity band is 2.5%–17.5%.

Refresh after each National Budget. Confirm access with your fund and tax with SARS or a registered practitioner. Figures below are illustrative. Planning estimates only, not SARS-verified.

Worked example (illustrative only)

Someone plans to stop full-time work at about 50. Annual spend target: R420,000 (R35,000 a month). Retirement access on the locked pot: 55. Five-year bridge. Figures rounded. Not a recommendation.

Bucket	Balance (ZAR)	Role in the years
TFSA (EE + bank combined)	R1,100,000	Accessible. Qualifying withdrawals are tax-free inside TFSA rules. Lifetime room is not restored.
Taxable local + offshore (ZAR)	R900,000	Accessible. CGT, interest and dividends may apply — not modelled as one tax number here.
Cash (emergency)	R120,000	Buffer. Not five years of expenses.
Two-pot savings pot	R90,000	Once per tax year, taxed as income. Not the TFSA. Not the plan for R420,000 a year.
RA / pension retirement pot	R2,200,000	Locked until 55. Does not fund 50–55.
Home equity (value − bond)	R840,000	On the net-worth line. Not sold for groceries.

Total net worth: R5,250,000. Looks like “enough” if you stop reading.
Excluding home equity: R4,410,000. Still mixes locked and unlocked.
Accessible investments (TFSA + taxable): R2,000,000. This is the pool that may have to fund 50–55.
Locked retirement pot: R2,200,000. Counted from 55, not from 50.
Savings pot + emergency cash: R210,000. Real money, wrong job if you treat it as a tax-free bridge.

Five years × R420,000 = R2,100,000 of spend before 55, before inflation, returns, fees and tax. Accessible investments are R2,000,000. On these made-up numbers the bridge is tight even before inflation. Total net worth of R5.25 million did not say that. The accessible line did.

Which bucket funds which years

Age 50–55 (the bridge). TFSA and taxable/discretionary accounts are the accounts that can pay the bills. Sequence is a trade-off, not a ranking: spending taxable first may preserve TFSA compounding; spending TFSA first may avoid CGT in a given year. Run both as scenarios. Do not spend the emergency fund as year-one income. Do not treat a savings-pot withdrawal as a TFSA debit order — once per tax year, taxed as income, and R90,000 does not cover R420,000.

From 55. The retirement pot may become available under fund rules. A living annuity, if that is the product, must draw between 2.5% and 17.5% of the value each year. On R2,200,000 that band is roughly R55,000–R385,000 in the first year of that capital — a range, not a paycheck. 4% of R2,200,000 is R88,000. That does not replace R420,000 of spend. TFSA and remaining discretionary balances still have to do part of the work, or expenses have to change, or both.

What this example does not do. It does not apply living-annuity tax, two-pot withdrawal tax, or CGT. It does not inflate R420,000 for five years. It does not pick a fund or a drawdown rate. Copying these balances into your life is a mistake. Put your own buckets into a tracker and a FIRE plan instead.

Open the FIRE planner

Common mistakes

Using one net-worth number as years of runway.
Importing the US 4% rule as if it were a SARS or living-annuity law.
Treating 17.5% as “allowed, therefore sustainable.”
Funding 50–55 from an RA that is locked until 55.
Treating the two-pot savings pot as a TFSA or as a second tax-free emergency account.
Ignoring that TFSA withdrawals do not restore the R500,000 lifetime cap.
Counting home equity as living expenses.
Asking an app which drawdown rate is “safe” instead of which constraints bind for your buckets.

Spreadsheet vs a dedicated tracker

A spreadsheet works if you keep every provider current, split accessible vs locked yourself, remember two-pot is not TFSA, and rebuild when Budget day moves TFSA caps or when you change FIRE age. Plenty of DIY investors start there. The January refresh is the part that slips.

Libevyn is wealth-first and manual: add each SA account once, enter balances, see net worth by tax bucket, accessibility tiers, cross-provider TFSA room (R46,000 annual / R500,000 lifetime for 2026/27), and a FIRE portfolio that can exclude locked RA and property by default. The FIRE planner models accessible vs retirement wealth and the bridge to 55 from assumptions you control.

What it does not do: personalised advice, SARS-verified tax, or bank sync. The free two-pot withdrawal calculator is educational planning only — confirm official figures with SARS or your fund. Founding plans start from R49 per month billed annually or R59 month to month after a 14-day trial. No bank passwords. Not an FSP.

Frequently asked questions

Can I use one net-worth number to see how long my money will last?: No. Total net worth mixes home equity, locked RA/pension money, TFSA, taxable investments and cash. Accessible balances may have to fund the years before 55; locked retirement balances typically cannot. Use both numbers. Conflating them overstates how close you are.
Is the 4% rule the law in South Africa?: No. It is a planning lens from other markets. South African living annuities have a statutory drawdown band of 2.5%–17.5% a year. That band is a legal range, not a safe-withdrawal rate. 4% sits inside the band; that does not make 4% official.
What does the 2.5%–17.5% living annuity band actually mean?: If you buy a living annuity, the amount you draw each year must stay inside that percentage of the value. 2.5% may not cover expenses. 17.5% may shrink capital quickly. Neither figure is a forecast of how long the money lasts.
Can I use my two-pot savings pot like a TFSA?: No. A savings-pot withdrawal is allowed once per tax year and taxed as income. A TFSA has separate annual (R46,000) and lifetime (R500,000) contribution limits for 2026/27, a 40% excess penalty, and tax-free growth inside the wrapper. Different room, different tax, different job.
If I FIRE at 50, which accounts fund the years before 55?: Typically TFSA and discretionary/taxable investments — the accessible pool. RA, pension and the retirement pot stay locked until access, usually 55. Emergency cash is a buffer. A two-pot savings-pot withdrawal is a taxed, once-a-year option, not the core bridge.
Does Libevyn calculate tax on a two-pot withdrawal?: Yes — a free public two-pot withdrawal calculator is live at /tools/two-pot-withdrawal. It estimates income tax on a savings-component withdrawal for planning (educational only, not a SARS directive). The app also tracks wealth by bucket, accessibility, TFSA room and a FIRE projection that includes two-pot and bridge-period modelling where supported. For directive mechanics and filing surprises, see the two-pot savings withdrawal tax guide. Confirm official figures with SARS or your fund.
When can I access an RA or pension?: Under current rules, retirement funds are typically restricted until 55, with two-pot savings-pot access on its own (once per tax year, taxed as income). Fund type, preservation and product terms matter. A tracker can flag access category. It cannot give a single “locked until” date for every fund.
Should I include my home in the runway?: Include it in total net worth. Do not treat primary-residence equity as years of living expenses unless you have a concrete plan to sell or draw on it. The net worth guide separates total, investable and FIRE views for that reason.
Is Libevyn a financial adviser or an FSP?: No. Libevyn is a tracking and planning tool. It does not provide personalised financial, investment, retirement or tax advice.

Try it in Libevyn

Add your TFSA, RA, taxable, offshore, property and cash accounts. See total net worth, accessible vs locked, TFSA room across providers, and a FIRE plan that models the bridge to 55. 14-day free trial — no bank passwords.

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Planning information only — not financial or tax advice. Libevyn is not an FSP. Figures are estimates from the numbers you enter; not SARS-verified. Confirm with SARS or a registered practitioner before acting.