Retirement Annuity FAQ

Can my employer contribute to a retirement annuity on my behalf?

Yes. The employer can either contribute to the RA on the member’s behalf, or deduct such contributions from the employee’s pay. If the employer makes the contribution on behalf of the employee then this will attract fringe benefits tax that must be recovered from the employee.  In both cases, the employee can claim these RA contributions for tax, up to a maximum of 27,5% of gross remuneration or taxable income (whichever is the higher) subject to an annual deduction cap of R350,000.

What is a retirement annuity?

A retirement annuity (RA) is a retirement fund in terms of the Pension Funds Act. It is a tax effective investment vehicle designed for individual investors (as opposed to employees who contribute to a workplace retirement fund). A retirement annuity is ideal for people who- are self-employed;- don’t have access to a work-place pension or provident fund through their employer;- want to supplement their pension or provident fund savings- earn significant amounts of non-pensionable income (eg interest and rental in...

Get up to 60% more savings with 10X

Investing is simple and easy with 10X's award winning low cost investment solution

Find out more

Get started or switch to 10X today.