Retirement annuity tax benefit
See how much tax you save by contributing to a retirement annuity, and how that builds toward your retirement.
Your details
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Monthly equivalent: R50 000
Projections run from your age to here (30 years to go).
The total already saved across your pension, provident fund and RAs. This compounds forward — it doesn't affect your tax.
What you already put away each month — not your balance. Include employer pension, provident fund, and any existing RA.
The number to play with — the additional amount you're considering putting into an RA each month.
Real return (after inflation). For example, 5% here ≈ 10–11% nominal at typical SA inflation. Balanced funds typically return 4–6% real over the long term.
You contribute R2 500/month but it effectively costs you R1 600 after tax relief at your 36% marginal rate.
That's R10 800 back per year.
Projections use real (inflation-adjusted) returns. The RA deduction is capped at 27.5% of taxable income or R430 000/yr (2026/2027 tax year). These are estimates — speak to a qualified financial adviser for personalised advice.
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Estimates use SARS 2026/2027 tax tables, primary and age rebates, and the 27.5% / R430,000 retirement-fund deduction cap. For planning only — speak to a qualified financial adviser before making decisions.