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Calculate how much tax you can save by contributing to a Retirement Annuity (RA). Contributions are tax-deductible up to 27.5% of income, capped at R350,000 per year.
Tax Year: 2026/2027
If you contribute to a company pension/provident fund, include employer + employee contributions
Step 1: Calculate maximum deduction
Step 2: Deduct from taxable income
Your RA contribution (up to the max) reduces your taxable income, saving tax at your marginal rate.
Every R100 you put in only costs you R61 out of pocket!
You can contribute up to R 184 000 more per year and still get full tax deduction.
Taxpayer Earning R800,000/year (39% Marginal Bracket)
• Monthly RA Contribution: R3,000 (R36,000/year)
• SARS Section 11(k) Cap: 27.5% of R800,000 = R220,000 (R36k is well within limit)
• Taxable income reduced from R800,000 to R764,000
• SARS Annual Tax Refund / Saving: R14,040 (39% of R36,000)
• Real Net Out-of-Pocket Cost: R21,960 (SARS funds 39% of your retirement savings!).
Generally at age 55, or earlier under specific circumstances (emigration, total disability, or if the value is below R15,000). Under the Two-Pot system, the savings pot component can be accessed earlier.
One-third of new contributions goes to your savings pot (accessible before retirement, taxed at your marginal rate) and two-thirds is preserved for retirement.
RAs give you an upfront tax deduction but are taxed on withdrawal. TFSAs have no upfront deduction but are completely tax-free on growth and withdrawal.