2026/27 limits: 27.5% up to R430 000

Retirement annuity tax saving calculator

SARS lets you deduct retirement contributions from your taxable income. See how big your tax refund could be, and what an RA really costs you each month after tax.

Pension or provident fund through your job. 0 if none.

How the RA tax deduction works

Contributions to pension, provident and retirement annuity funds are deductible up to 27.5% of the higher of your remuneration or taxable income, capped at R430 000 a year from 1 March 2026. The tax you save equals the deduction × your marginal tax rate, so higher earners save more per rand.

Contributions above the limit aren't lost. They carry forward to future years and can reduce tax on your retirement lump sum or annuity.

If you contribute through your employer, PAYE is reduced each month. With a private RA you usually get the saving as a refund when you file your tax return.

Frequently asked questions

When do I get my RA tax refund?

For a private RA, the refund comes when you submit your annual tax return in filing season. Your RA provider sends an IT3(f) certificate that you (or auto-assessment) include.

Can I access my RA before retirement?

Under the two-pot system, a portion of new contributions goes into a "savings pot" that allows limited withdrawals (taxed at your marginal rate). The rest is preserved until retirement from age 55.