Retirement annuity tax benefit
What can an RA contribution save you in tax? See the saving and what the contribution really costs you after tax relief.
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Monthly equivalent: R50 000
Only used for the age-based tax rebates at 65 and 75.
What you already put into retirement funds each month — employer pension or provident fund and any existing RA. It counts towards the same deduction limit.
The additional amount you're considering putting into an RA each month.
Your R2 500/month extra RA contribution costs you about R1 600/month after tax relief, at your 36% marginal rate.
- Tax without extra RA
- R132 907/yr
- Tax with extra RA
- R122 107/yr
The RA deduction is capped at 27.5% of taxable income or R430 000/yr (2026/2027 tax year). Estimates only — speak to a qualified financial adviser for personalised advice.
SARS 2026/27 tax tables, checked 27 Sep 2026 · Sources & methodology
Estimates use SARS 2026/27 tax tables, primary and age rebates, and the 27.5% / R430 000 retirement-fund deduction cap. For planning only — speak to a qualified financial adviser before making decisions.