Useful next calculations
Rates and sources, 2026/27
SARS retirement fund lump sum benefit and withdrawal benefit tables for the 2027 tax year (1 March 2026 to 28 February 2027), unchanged from the previous year.
| Band or figure | Rate |
|---|---|
| Retirement: tax-free | R550,000 (18% to R770,000, 27% to R1,155,000, then 36%) |
| Withdrawal: tax-free | R27,500 (18% to R726,000, 27% to R1,089,000, then 36%) |
Source: SARS — retirement lump sum benefits. Source checked for 2026/27.
When to use this calculator
- Before choosing between saving, investing or changing a contribution.
- When you want to compare cautious, base and optimistic return assumptions.
- When you need a projection before making a longer-term decision.
- When you want to see whether starting earlier or contributing more changes the outcome more.
A worked example
These are the example figures the calculator opens with.
| Input | Value |
|---|---|
| Withdrawal Amount (R) | 1 000 000 |
| Withdrawal Type | Retirement (lump sum at retirement) |
For those figures the calculator returns:
- Tax-free portion: R550 000,00
- Tax on withdrawal: R101 700,00
- Net proceeds: R898 300,00
- Effective rate: 10.20%
How to read your results
Tax-Free Portion
Review this figure alongside gross income and the local tax rules that apply to you. It is a planning estimate, not a filing result.
Tax on Withdrawal
Review this figure alongside gross income and the local tax rules that apply to you. It is a planning estimate, not a filing result.
Effective Rate
The effective rate lets you compare options on a like-for-like basis rather than being misled by different compounding periods or fee structures.
Common mistakes
- Using an assumption that is not supported by a current local quote, bill, statement or official source.
- Treating a generic estimate as a lender, provider, payroll or tax authority decision.
- Mixing monthly and annual inputs without converting them consistently.
- Testing only one scenario instead of checking how a cautious assumption changes the result.
What to do next
- Run a second scenario with a cautious assumption so you can see the downside clearly.
- Compare the result with the related calculators below before making a decision.
- Check current local rules, eligibility and provider terms before applying or committing money.
- Keep a record of the assumptions so you can update the estimate when a quote, bill or pay figure changes.
Questions people ask
For a retirement lump sum taken at retirement (from a pension, provident, or retirement annuity fund), the first R550,000 is tax-free over your lifetime. This is a cumulative lifetime limit — if you previously withdrew a lump sum at retirement and used part of the tax-free portion, the remainder is reduced accordingly.