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Retirement Annuity Calculator (South Africa)

Calculate your South African Retirement Annuity (RA) tax deduction and projected balance. SARS allows 27.5% of income up to R350,000 per year as a tax deduction.

South Africa estimateLast reviewed 15 August 2026Reviewed after a methodology change

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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 realistic South Africa planning example

Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.

A realistic South Africa planning example
InputValue
Annual Taxable Income (R)R400,000
Annual RA Contribution (R)R250 per month
Current Age35
Target Retirement Age35

After entering these figures, review projected ra balance, annual tax saving and net cost of contribution together rather than in isolation. Then rerun the tool with one input adjusted.

How to read your results

Projected RA Balance

The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.

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.

Net Cost of Contribution

The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.

Max SARS-Deductible Amount

The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.

Deductible Contribution

The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.

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.

Frequently asked

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.

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