Retirement Planning South Africa
Compare pension funds, retirement annuities, provident funds, and the two-pot system. Use free calculators and get matched with a certified financial advisor.
The 4 Pillars of SA Retirement
Understand every retirement vehicle available to South Africans.
Pension Fund
Employer-linked defined contribution funds. Your employer and you contribute monthly — tax-deductible and preserved until retirement.
Learn about pension funds →Retirement Annuity (RA)
Self-directed retirement savings. Contribute up to 27.5% of taxable income (max R350K/year) and pay no tax on growth until withdrawal.
Explore retirement annuities →Provident Fund
Similar to a pension fund but historically allowed a lump-sum payout. Now aligned with pension funds under retirement reform.
Understand provident funds →Two-Pot System
SA's new retirement reform (effective 1 Sep 2023). Splits contributions into a savings pot (accessible) and a retirement pot (preserved).
Understand the two-pot system →New: Two-Pot Retirement System
Effective 1 September 2023, all South African retirement funds split contributions into a savings pot and a retirement pot. Find out what it means for your retirement savings.
Retirement Calculators
Project your savings, calculate tax benefits, and compare scenarios — all free.
Retirement Calculator
Project your retirement savings over time.
Retirement Annuity Calculator
Calculate RA growth + tax savings.
Pension Fund Calculator
Estimate your pension fund payout at retirement.
Two-Pot Calculator
See how much you can withdraw from your savings pot.
Compare All 3
Side-by-side comparison: pension, RA and two-pot — synced inputs.
Get a Personalised Retirement Plan
Tell us your age, income, and savings — we'll match you with a certified financial advisor who specialises in retirement planning.
Frequently Asked Questions
What is the difference between a pension fund and a retirement annuity?
A pension fund is employer-linked — both you and your employer contribute. A retirement annuity (RA) is self-directed and available to anyone, even self-employed individuals. Both are tax-deductible up to 27.5% of taxable income.
What is the two-pot retirement system in South Africa?
The two-pot system (effective 1 September 2023) divides new retirement contributions into two pots: a savings pot (1/3 of contributions, accessible from age 55 or earlier once per year) and a retirement pot (2/3 of contributions, preserved until retirement).
How much can I contribute tax-free to retirement in South Africa?
You can deduct up to 27.5% of the greater of remuneration or taxable income, capped at R350,000 per tax year, across all retirement funds combined (pension, provident, and RA).
What happens to my pension when I change jobs?
When you resign, you can preserve your pension in a preservation fund (no tax), transfer it to a retirement annuity (no tax), or take a cash payout (taxed on a sliding scale). Preserving is almost always the better option for long-term wealth.
At what age can I retire in South Africa?
The normal retirement age is 55 for most retirement funds, though many funds and employers set it at 60 or 65. You can access your savings pot under the two-pot system from age 55 without fully retiring.
Which body regulates retirement funds in South Africa?
Retirement funds are regulated by the Financial Sector Conduct Authority (FSCA) under the Pension Funds Act. SARS allows tax deductions of up to 27.5% of taxable income (capped at R350,000/year) on contributions to pension, provident, and retirement annuity (RA) funds. Regulation 28 of the Pension Funds Act limits how much can be invested offshore or in high-risk assets. At retirement you may choose a living annuity — which allows a flexible income draw-down of 2.5%–17.5% of capital per year — or a life (guaranteed) annuity for fixed lifelong income. A preservation fund allows you to hold retirement savings tax-free between jobs.
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