Plan your retirement with tax-efficient contributions. Calculate pension fund growth, monthly pension projections, and maximize your tax deductions.
Plan your retirement with tax-efficient pension contributions
Max 27.5% of salary is tax deductible (capped at R350,000/year)
Your existing retirement fund balance
Historical SA equity: ~10-12% long-term
Safe withdrawal rate to not outlive your money
Employer-sponsored defined benefit or contribution fund. At retirement, 1/3 can be taken as lump sum (R550,000 tax-free), 2/3 must buy an annuity.
Similar to pension fund but historically allowed full lump sum at retirement. Since 2021, new contributions follow pension fund rules (1/3 lump sum, 2/3 annuity).
Personal retirement fund for self-employed or additional savings. Same tax benefits as pension fund. Can't access before age 55.
Contributions up to 27.5% of your salary (max R350,000/year) are tax deductible. At retirement, first R550,000 lump sum is tax-free, remainder taxed on sliding scale.
South Africa offers generous tax incentives for retirement savings. Contributing to a pension, provident, or retirement annuity fund reduces your taxable income and grows tax-free until retirement.
Contributions are tax deductible up to 27.5% of salary
Investment growth is not taxed within the fund
First R550,000 lump sum at retirement is tax-free
Retirement funds protected from creditors
Employer-sponsored. At retirement: 1/3 lump sum (R550K tax-free), 2/3 must buy annuity.
Similar to pension. Pre-2021 contributions can be taken as full lump sum. New contributions follow pension rules.
Personal fund for self-employed or additional savings. Same tax benefits. Can't access before 55.
R1,000/month from age 25 → R6.8M at 65 (at 10% return)
R1,000/month from age 35 → R2.3M at 65 (at 10% return)
10 years earlier = 3x more money!
Financial advisors recommend 15% of your salary. The minimum to get full tax benefit is whatever reaches the 27.5% cap. Start as early as possible - compound interest is your friend.
You can access your pension fund if you resign, are retrenched, or emigrate. However, early withdrawal is heavily taxed. Retirement annuities cannot be accessed before age 55.
From September 2024, new contributions split into: Savings pot (1/3) - accessible once per year, and Retirement pot (2/3) - preserved until retirement. Minimum withdrawal R2,000.