Retirement Annuity (RA) Calculator

Calculate your projected retirement fund value and annual tax saving from RA contributions — based on SARS 2026 rules.

Your Details

Annual Gross Income (R)

Your total annual salary or taxable income before deductions

Annual RA Contribution (R)

SARS allows up to 27.5% of taxable income (max R350,000/year) as a deduction

Current Age

Retirement Age

Existing RA Fund Value (R)

Current total saved in your RA/pension. Enter 0 if starting fresh.

Expected Annual Return (%)

Long-term SA equity funds have historically returned 10–12% p.a. Use 10% as a conservative estimate.

Results

Allowable RA deduction (27.5% cap)

Actual deductible amount

Estimated annual tax saving

Years to retirement

Projected RA value at retirement

Monthly income from RA (4% drawdown)

⚠️ SARS Rules to Know:
• Max deduction: 27.5% of the greater of taxable income or remuneration, capped at R350,000/year.
• Excess contributions carry forward to future tax years — they are not lost.
• At retirement, you can take up to 1/3 as a lump sum (first R550,000 tax-free); the rest must be used to purchase an annuity.

What is a Retirement Annuity (RA)?

A Retirement Annuity is a private retirement savings vehicle available to all South Africans, including self-employed individuals who don't have access to an employer pension fund. RAs are regulated by SARS and the Financial Sector Conduct Authority (FSCA).

The Tax Benefit Explained

SARS allows you to deduct RA contributions from your taxable income — up to 27.5% of your taxable income or remuneration, with a maximum of R350,000 per year.

For example, if you earn R600,000/year and contribute R100,000 to an RA, you reduce your taxable income to R500,000. At the 36% marginal tax rate, that's a R36,000 tax saving.

Who Should Consider an RA?

Self-employed individuals and freelancers — no employer pension means an RA is essential
High earners who want to reduce their tax burden
Anyone wanting a tax-efficient, locked-in retirement savings vehicle

RA vs Pension vs Provident Fund

If you have an employer, you likely have access to a pension or provident fund. RAs complement these — you can contribute to an RA even if you already have an employer fund, as long as your combined contributions don't exceed the 27.5% / R350,000 cap.

Disclaimer

This calculator provides estimates for educational purposes only. It does not constitute financial advice. Consult a registered financial adviser before making retirement investment decisions. Tax rules may change.