i What this calculator does
This calculator works out your immediate tax deduction from an RA contribution (up to 27.5% of taxable income, capped at R430,000 a year), and projects your fund's future value based on your monthly contribution and expected growth rate.
Enter your taxable income, monthly contribution, and years to retirement, and the calculator returns both your annual tax saving and your projected retirement fund value, see our guide on why the R430,000 cap increased for more context.
This calculator is for educational purposes only, uses 2026/27 SARS deduction limits, and doesn't account for fees, inflation, or existing fund balances. Not financial advice.
How to use the Retirement Annuity Calculator
Every field starts with a sensible default, so a result appears before you change anything at all.
- 1. Annual Taxable Income (R)
- 2. Monthly RA Contribution (R)
- 3. Years Until Retirement
- 4. Expected Annual Growth Rate (%)
The result panel reports:
- Annual Tax Saving From this year\
- Deductible Amount Of R
- Projected Fund Value After
Alongside the headline figures, the calculator reports annual tax saving, deductible amount, projected fund value, total growth. Those are the numbers that usually explain why the headline result came out where it did.
Under the answer, every operation is shown, so a figure that looks wrong can be traced rather than guessed at.
Keep a record of the inputs you used alongside the result. Six months later the figure on its own tells you nothing about what you assumed to reach it.
Frequently asked questions
What's the maximum I can deduct for RA contributions?
You can deduct RA, pension, and provident fund contributions combined up to 27.5% of your taxable income or remuneration, whichever is higher, capped at R430,000 per year, this cap applies across all your retirement fund contributions combined, not per fund.
Does this deduction reduce my tax immediately, or only at retirement?
The deduction reduces your taxable income for the current tax year, meaning it lowers what you owe SARS now, this is separate from the tax treatment of growth within the fund and eventual withdrawals at retirement.
What happens if I contribute more than the deductible limit?
Contributions above the 27.5%/R430,000 limit aren't lost, they carry forward and can be deducted in future tax years, or used to reduce tax on your eventual retirement lump sum, though the immediate deduction only applies up to the annual cap.
Does this calculator account for Regulation 28 investment restrictions?
No, this calculator focuses on the tax deduction and projected fund value based on your contributions and assumed growth rate. Regulation 28 caps equity and offshore exposure within retirement funds but doesn't directly affect this specific calculation.
Is an RA the same as a pension or provident fund?
They're related but distinct, an RA is an individual retirement product you can contribute to regardless of employer, while pension and provident funds are typically employer-linked, all three share the same combined 27.5%/R430,000 deduction cap.
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