Retirement Annuity in South Africa
ⓘ QUICK ANSWER
A Retirement Annuity (RA) is a long-term savings vehicle specifically designed for retirement. Your contributions are tax-deductible up to 27.5% of your income, your investment grows tax-free, and you receive an income for life when you retire. It's one of the most tax-efficient ways to save for retirement in South Africa.
- Tax Deductible
- FSCA regulated partners
- Flexi Contributions
Why Choose a Retirement Annuity Through All Life Matters?
Starting your RA is one of the most important financial decisions you'll make. We make it easy to get started with a trusted partner.
| Feature | All Life Matters | Going It Alone |
|---|---|---|
| Guided application process | ✔ | ✖ |
| Time spent applying | Under 60 seconds | 60+ minutes |
| Trusted, regulated provider | Sanlam | Research required |
| Tax-deductibility guidance | ✔ | DIY |
| Zero obligation enquiry | ✔ | ✖ |
Why Do I Need A Retirement Annuity?
South Africa has one of the lowest retirement savings rates in the world — less than 10% of South Africans can afford to retire comfortably. The earlier you start, the more compound growth works in your favour. A Sanlam RA gives you a structured, tax-efficient vehicle to build the retirement you deserve.
Tax Savings
Contributions to an RA are tax-deductible up to 27.5% of your taxable income (maximum R350,000 per year), reducing your tax bill today while you build for tomorrow.
Tax-Free Growth
Your money grows within the RA free of income tax, dividends tax, and capital gains tax — compounding faster than most ordinary investments.
Protection from Creditors
RA funds in South Africa are protected from creditors by law, giving you an additional layer of security for your retirement savings.
Frequently Asked Questions
Everything you need to know about Retirement Annuities in South Africa.
When can I access my retirement annuity?
You can access your RA from age 55. At retirement, you may take up to one-third as a lump sum (the first R550,000 is tax-free), with the remainder used to purchase an annuity that pays a monthly income.
What is the minimum contribution I can make?
Minimums vary by provider and product. Many Sanlam RA products allow you to start with a modest monthly contribution and increase it over time as your income grows.
What if I need to stop contributions temporarily?
Life happens. Most RA products allow you to reduce or pause contributions (paid-up options) without closing the policy, so your existing savings continue to grow.
Is my RA money protected if I go insolvent?
Yes. In terms of the Pension Funds Act, RA funds are protected from creditors and insolvency proceedings — unlike money held in a standard savings or investment account.
Can I have both a company pension fund and a retirement annuity?
Absolutely. Many South Africans top up employer pension fund savings with an RA to increase their total retirement savings and maximise their tax deduction.