Three easy steps to top up your retirement annuity:
Savings Tax Calculator to find out what your annual top up limit is.
Login to our
Secure Online Services Portal. Your Top-up form has been pre-populated for your convenience.
Submit the form online (before 28 February). All done!
Why should I top up my retirement annuity?
A retirement annuity (RA) is specifically designed to save tax-efficiently for retirement. The more you contribute towards your retirement annuity in a tax year (up to a certain limit), the more tax benefits you will get.
How does the tax benefits work when I top up my retirement annuity?
When you save for retirement in a retirement annuity, a portion of the total contribution in any given tax year is tax deductible. This means that it can be claimed back from SARS and it will not have any impact on the value of your investment. In essence, you are being incentivised for saving for retirement.
What is the maximum tax benefit that I can claim back in a tax year?
The maximum tax deduction for all contributions to retirement annuity funds, pension funds and provident funds, is 27.5% of remuneration or taxable income (whichever is the greater). The annual maximum tax deduction limit is R350 000.
What happens when I exceed the maximum tax deduction limit for the year?
If you contribute more than the allowable tax deduction limit, you can claim this amount in future tax years. For example, you can use the deferred tax benefit to reduce the taxable portion of a lump sum payment when you retire, or to supplement your annuity payments in retirement.