Retirement planning

Calculator

Explore your retirement annuity tax savings and see how reinvesting them could shape your future.

RA tax saving and reinvestment calculator

See how your retirement annuity contributions could reduce your income tax, then explore what reinvesting those savings could mean for your future.

Based on the 2027 tax year, from 1 March 2026 to 28 February 2027.

Your details and assumptions

Taxable income for the year, before any retirement annuity deduction.
Max deductible = 27.5% of taxable income, capped at R430,000 p/a (2027 limit).
Equivalent monthly maximum:
Type the amount you want to contribute each year (defaults to the full allowance above).
Equivalent monthly contribution:
The new RA contribution above grows by this % every year (e.g. in line with salary increases), until it reaches today's annual limit shown above, from then on it stays flat at that limit.

Current contributions to existing RAs (optional)

Already-running RAs reduce how much of the annual limit is still available for a new contribution.

Existing RA 1

Existing RA 2

The first part of the annual tax saving is diverted into a tax-free savings account (tax-free growth, no tax on withdrawal) before any remainder is reinvested below.
2027 SARS annual TFSA contribution limit is R46,000.
Once total contributions reach this lifetime cap, no further amounts can go into the TFSA, the balance simply keeps growing.
Approximates CGT, dividend and interest tax inside a discretionary portfolio, adjust to suit your tax profile.

Retirement income illustration

South African living annuities allow a 2.5% to 17.5% annual drawdown by law; around 4% to 5% is a commonly used sustainable starting point.
Used to convert the future rand income back into today's purchasing power.
Include in the income calculation
RA fund values (new + existing) are always included. Choose whether the TFSA and the reinvested/voluntary savings should also form part of the income provision, or be kept separate.

Your income tax comparison

Without RAWith RA
Taxable income--
Tax per SARS tables--
Less: primary rebate--
Income tax payable--
Average tax rate--
Annual income tax saving-
Monthly income tax saving-
Assumes an individual taxpayer under age 65, primary rebate only, no other deductions or medical credits.

Your contribution after tax savings

New contribution minus the tax it alone saves, per year and per month
-

Your projected retirement savings

New RA fund value
-
From the RA contribution itself, growing tax-free
Reinvested tax saving
-
Compounding the annual saving
Total future retirement savings
-
Your RAs, TFSA and reinvested savings combined

What this means for you

New RA fund Reinvested tax saving

What monthly income could this become?

Illustrative monthly income the selected retirement provision could support (RA funds always included; TFSA and reinvested savings only if selected in your assumptions), drawn at the rate set, shown both in future rand terms and in what that's really worth in today's purchasing power.
Monthly income in future terms
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In rand terms at the end of the term
Monthly income in today's terms
-
What that income is really worth in today's purchasing power

About this illustration

Illustration only, not advice or a quote. Based on the SARS 2027 tax year table (1 March 2026 to 28 February 2027): 7 marginal bands from 18% to 45%, primary rebate R17,820, and a section 11F retirement fund deduction limit of 27.5% of taxable income or remuneration (whichever is greater) capped at R430,000 per year, with any excess carried forward. Projections grow the new RA contribution annually at the escalation rate set, capped at today's rand-value annual limit once reached; the resulting tax saving, TFSA allocation and RA-room/voluntary split are recalculated each year in step with it, but assume a constant taxable income and tax brackets throughout the term (no inflation of income or thresholds). Existing RAs, growth rates, and the tax-drag assumption are held constant. Ignores fees, tax on eventual retirement lump sums or annuity income, and legislative change. The retirement income illustration is a simple percentage drawdown of the projected total and does not model actual living-annuity mechanics, investment sequencing, or mortality. Figures should be verified against a formal quotation before being relied upon.