Contributions plus compounding — and a tax break
Your retirement pot grows from your contributions and investment growth compounding year after year. South Africa sweetens this with a tax deduction: contributions up to 27.5% of pay (capped at R430,000 a year) reduce your taxable income.
Because of compounding, starting age matters enormously: the same monthly contribution a decade earlier can mean a far bigger pot.
Common questions
Contributions to retirement funds are deductible up to 27.5% of the greater of your remuneration or taxable income, capped at R430,000 a year for 2026/27.
No. This projects your own retirement savings only. The older persons grant is means-tested and separate.
Long-run balanced funds in South Africa have returned around 10% a year nominally. A lower assumption gives a more conservative projection.