Retirement annuity calculator
See what a monthly retirement annuity contribution becomes by the time you retire, how the total splits between your own money and growth, and the tax SARS gives back along the way. No signup, nothing leaves this page.
How this works
Your money grows in two ways: the contributions you make, and compound growth on everything already in the pot. Over long periods the growth usually ends up much bigger than your own contributions; at 10% a year, R500 a month becomes about R1.13 million after 30 years, of which only R180 000 is your own money.
Retirement annuity contributions are also tax deductible. SARS lets you deduct up to 27.5% of your income, capped at R430 000 a year (raised from R350 000 in Budget 2026). That means a portion of every contribution comes back to you as a smaller tax bill or a bigger refund, at your marginal tax rate. Enter your income above and the calculator shows the annual saving.
The projection uses a steady growth rate compounded monthly, with contributions at the end of each month. Real markets move around that average, and fund fees and inflation reduce what your money buys at retirement, so treat the number as a planning guide rather than a promise.
Frequently asked questions
Is R500 a month enough for retirement in South Africa?
R500 a month for 30 years at 10% growth builds about R1.13 million. That helps, but most planners suggest saving around 15% of your income for a comfortable retirement. The earlier you start, the harder compounding works for you.
How much tax do I get back on a retirement annuity?
Contributions are deductible up to 27.5% of your income, capped at R430 000 a year. The saving equals your contribution times your marginal rate: contribute R2 000 a month on a R400 000 salary and SARS effectively gives back around R7 440 a year at your 31% marginal rate.
What growth rate should I use for a retirement calculator?
South African balanced funds have historically returned around 9% to 12% a year over long periods before fees. 10% is a reasonable middle assumption; use a lower rate if you want to be conservative or your fund is invested cautiously.
Can I withdraw money from my retirement annuity before 55?
Since the two-pot system started in September 2024, one third of new contributions goes to a savings pot you can access once a tax year (minimum R2 000, taxed at your marginal rate). The retirement pot stays locked until at least age 55. Try our two pot withdrawal tax calculator to see what a withdrawal really costs.
What happens if I contribute more than the tax deduction limit?
Nothing is lost. Contributions above 27.5% of income or the R430 000 cap roll over to future tax years, and anything still unclaimed at retirement reduces the tax on your lump sum or pension.
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View the serviceThis projection assumes steady growth before fees and inflation, and uses the SARS 2026/27 deduction rules (checked August 2026). Investment returns are not guaranteed. Free tools are estimates. Packs are templates and guidance, not legal or financial advice.