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    Retirement annuity (RA)

    An individual retirement product providing the same tax deduction (27.5%, capped R350,000) as a pension fund.

    Full definition

    A retirement annuity is a private retirement fund an individual contributes to directly (independent of an employer). Contributions are tax-deductible on the same 27.5%/R350,000 rules and the same annuitisation rules apply at retirement.

    See also

    Pension fund
    A retirement savings vehicle where contributions are tax-deductible (up to 27.5% of income, capped at R350,000/year).
    Two-pot retirement system
    From 1 September 2024, one-third of new retirement contributions go to a Savings Pot; two-thirds to a Retirement Pot.

    Automate Retirement annuity (RA) in your payroll

    Payroll Africa handles Retirement annuity (RA) calculations automatically for South African employers — SARS-aligned for 2026/27. From R90/month.

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    Let payroll handle Retirement annuity (RA) for you

    Payroll Africa calculates it automatically every month for South African employers — SARS-aligned, with payslips, EMP201 and IRP5 included.

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