How is the projected RA balance calculated?

The projected balance uses a compound growth formula applied annually. Each year, your current balance plus the annual contribution is multiplied by one plus the expected growth rate. This compounds over the number of years until your chosen retirement age. The result shows the nominal value at retirement and does not adjust for inflation. Use a conservative growth assumption — typically 6% to 9% for a balanced fund — to avoid overestimating your outcome.

Retirement Annuity Calculator (South Africa)

Useful next calculations

Use the South African Income Tax CalculatorContinue with the related south african tax question this result raises.
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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.

A worked example
Input	Value
Annual Taxable Income (R)	600 000
Annual RA Contribution (R)	60 000
Current Age	40
Target Retirement Age	65

For those figures the calculator returns:

Projected RA balance: R4 737 264,91
Annual tax saving: R21 600,00
Net cost of contribution: R38 400,00
Max SARS-deductible amount: R165 000,00
Deductible contribution: R60 000,00

How to read your results

Annual Tax Saving

Review this figure alongside gross income and the local tax rules that apply to you. It is a planning estimate, not a filing result.

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

Under the Pension Funds Act, you generally cannot access your retirement annuity before age 55, except in cases of serious illness, disability, or if your fund value falls below a de minimis threshold set by the fund rules. From 2024, the two-pot retirement system introduced a savings component that allows limited pre-retirement withdrawals annually, while the retirement component remains preserved until retirement.