Retirement Calculator South Africa 2026 (Two-Pot System, Pension & Annuity)
Plan retirement under the South African Two-Pot Retirement System with savings/retirement pot allocations, post-retirement monthly drawdown, and SARS R550,000 tax-free lump sum in ZAR.
South Africa · Retirement Calculator South Africa
Methodology
Incorporates the South African Two-Pot Retirement System effective September 2024: 1/3 of contributions go to Savings Pot (accessible before retirement), 2/3 to Retirement Pot (preserved until retirement to buy an annuity). Calculates future nest egg using compound growth, retirement capital needed via the 4% safe withdrawal rule, and applies SARS retirement lump sum tax table (first R550,000 is tax-free).
-
01
User-provided inputs
This calculator uses only the values you enter. It does not automatically apply tax law, statutory deductions, lender fees, or live exchange rates.
-
02
Formula basis
The formula is shown openly and no country rate is inserted automatically.
-
03
Your estimate
AfricalHub is an independent private platform not affiliated with any government agency. Calculations are for educational planning only. Verify official filings with the relevant revenue authority or a qualified professional.
Sources
User-provided inputs
This calculator uses only the values you enter. It does not automatically apply tax law, statutory deductions, lender fees, or live exchange rates.
Frequently asked questions
How does the South African Two-Pot Retirement System work?
From September 2024, one-third of your retirement contributions flow into a Savings Pot that can be accessed once per tax year, while two-thirds flow into a Retirement Pot that must be preserved until retirement.
How much money do I need to retire comfortably in South Africa?
Financial planners typically recommend accumulating 20 to 25 times your annual salary or targeting a 75% income replacement ratio to sustain your lifestyle in retirement.
How is retirement lump sum taxed in South Africa?
Under SARS tables, the first R550,000 of your retirement lump sum is 100% tax-free. Subsequent amounts are taxed at 18%, 27%, and 36% above R1,150,000.