South African Retirement Calculator

This retirement calculator is designed to reflect how retirement benefits are calculated in South Africa. It uses common retirement scenarios and SARS-aligned tax rules to give realistic estimates.

The calculator considers your retirement fund value, age at retirement, withdrawal choices, and applicable tax rules. It then estimates both your once-off lump sum and your potential monthly retirement income. If you are retiring early, the calculation adjusts to reflect how early access to retirement benefits may affect your outcome.

The goal is not just numbers, but clarity helping you understand what your retirement benefits could look like in real terms.

hen you retire, you may be allowed to take a portion of your retirement savings as a lump sum. This is a once-off payment paid out when you access your retirement benefits.

In South Africa, lump sums from pension funds, provident funds, and retirement annuities are subject to specific retirement tax tables. The tax payable depends on the total value of lump sums you have withdrawn over your lifetime, not just the current withdrawal.

Your retirement lump sum can be used for major expenses such as settling debt, covering medical costs, or investing for future income. However, withdrawing a large lump sum may increase your tax liability and reduce your long-term monthly income.

This calculator helps you estimate your lump sum amount and understand how tax may impact what you receive.

After taking a lump sum, the remaining portion of your retirement savings is typically used to provide a monthly income. This income is paid either through a pension, living annuity, or life annuity, depending on your retirement product.

Monthly retirement income depends on several factors, including:

• The remaining retirement capital after lump sum withdrawal
• The income drawdown rate
• Investment performance
• Inflation over time

Unlike a lump sum, monthly retirement income is taxed as normal income in South Africa. This means your tax rate will depend on your total annual income during retirement.

The calculator estimates your expected monthly income to help you plan a sustainable retirement that balances income needs with long-term security.

Retirement tax in South Africa is governed by SARS and differs depending on how and when you access your benefits.

Lump sums are taxed according to retirement lump sum tax tables, which offer tax-free thresholds but become progressively higher as the amount increases. Monthly retirement income, on the other hand, is taxed under standard income tax rules.

If you have previously withdrawn retirement benefits for example, when resigning this can affect how much tax you pay at retirement. SARS considers your cumulative retirement withdrawals over time.

This retirement calculator provides an estimated tax outcome, helping you avoid surprises and plan more accurately.

Retirement tax in South Africa is governed by SARS and differs depending on how and when you access your benefits.

Lump sums are taxed according to retirement lump sum tax tables, which offer tax-free thresholds but become progressively higher as the amount increases. Monthly retirement income, on the other hand, is taxed under standard income tax rules.

If you have previously withdrawn retirement benefits for example, when resigning this can affect how much tax you pay at retirement. SARS considers your cumulative retirement withdrawals over time.

This retirement calculator provides an estimated tax outcome, helping you avoid surprises and plan more accurately.

Early retirement generally refers to accessing retirement benefits before the normal retirement age set by your fund or before age 55, depending on the circumstances.

Retiring early can reduce your retirement capital, increase the risk of running out of money later in life, and may result in higher effective tax costs over time. While early retirement lump sums may still qualify for retirement tax tables, the long-term impact on monthly income can be significant.

This calculator allows you to model early retirement scenarios so you can see how retiring earlier may affect both your lump sum and monthly retirement income.

UIF and retirement benefits are often confused, but they serve different purposes. UIF is designed to provide short-term relief if you become unemployed, while retirement benefits are long-term savings.

In most cases, UIF cannot be claimed once you are fully retired. However, if you resign before retirement and meet UIF requirements, you may be eligible for UIF benefits.

Resignation before retirement age may also trigger different tax treatment compared to formal retirement. Understanding the difference between resignation, retrenchment, and retirement is important when planning withdrawals.

This calculator focuses on retirement benefits, but it helps place UIF and resignation decisions in the broader retirement planning context.