Secure Your Future.
Pay Less Tax Today.
A Retirement Annuity (RA) is the ultimate wealth-building tool for South Africans. It allows you to build a substantial nest egg for your golden years while claiming massive tax deductions from SARS right now.
Why Invest in an RA?
The Unbeatable Tax Advantages
The government actively encourages you to save for retirement by offering incredible tax incentives. An RA is essential for self-employed individuals or anyone wanting to supplement their employer pension.
Massive Tax Deductions
You can deduct up to 27.5% of your taxable income (capped at R430,000 per year) for contributions made to your RA, giving you a significant tax refund from SARS.
Tax-Free Growth
Inside your RA, your money grows completely tax-free. You pay zero Capital Gains Tax, zero Dividend Withholding Tax, and zero Income Tax on interest earned.
Creditor Protection
By law, the money in your Retirement Annuity is protected from creditors. Even in the event of insolvency, your retirement savings remain completely secure.
Understanding the Structure
The Rules of Retirement Annuities
Because of the generous tax benefits, SARS places specific rules on how and when you can access your Retirement Annuity funds.
Access at Age 55
You cannot withdraw funds from your RA before the age of 55, ensuring the money is strictly preserved for your retirement (exceptions apply for severe ill health or formal emigration).
The 1/3 Lump Sum Rule
When you retire, you can take a maximum of one-third (33.3%) of your RA as a cash lump sum. A portion of this lump sum is completely tax-free.
Compulsory Annuity Purchase
The remaining two-thirds (66.6%) must be used to purchase a post-retirement product (like a Living Annuity or Guaranteed Annuity) to provide you with a monthly pension income.
Regulation 28 Compliance
RAs must comply with Regulation 28 of the Pension Funds Act, which limits exposure to high-risk assets (e.g., maximum 75% in equities, maximum 45% offshore) to protect your savings.
Why Plan Your Retirement With EBC?
Not all RAs are created equal. High fees and poor fund choices can destroy your retirement outcomes.
Fee Analysis
We analyze the Total Investment Charge (TIC) of your RA. We favor modern, new-generation RAs that offer transparent, low-cost fee structures to maximize your compound growth.
Optimal Fund Selection
Within the limits of Regulation 28, we build a tailored portfolio using top-performing underlying unit trusts from South Africa's leading asset managers.
Holistic Retirement Planning
An RA is just one piece of the puzzle. We look at your entire financial picture, including TFSAs, employer pensions, and discretionary investments, to build a comprehensive retirement roadmap.
Don't leave your retirement to chance.
Whether you want to start a new Retirement Annuity or review the performance and fees of your existing policies, our independent advisors are here to help.
Expert, independent retirement planning.