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Pay Less Income Tax using a Retirement Annuity!

A Retirement Annuity Investment Can Save You Income Tax!

The last day of February every year, is an important time for taxpayers.
This day marks the end of the tax year. and it is the last date open to you for reducing your income tax for this year!

And you know just how important any tax deduction is for you!
If you can reduce your gross earnings, you pay less income tax.

It's that simple!

So how do you reduce your income tax?

SARS allows every tax payer to divert a portion of their income tax into a Retirement Annuity.
Instead of losing it to the government, why not save it for your own pension?

It's a gift no one should ignore!
(Why every taxpayer does not have a RA is a mystery to those of us who do!)

Very few retirement funds allow you to inject an additional lump sum amount of cash into the fund in the last days of February - but not an RA!

How does it work?

The tax laws allow you to deduct a portion of your savings into a Retirement Annuity.
There are certain limits - depending upon how you earn your income and if you have a company pension or provident fund already.
But, even if you have a company pension fund, you can still benefit from this gift!

How do I get my share?

All you have to do is work out how much you earned (including income like commission, dividends, car allowance and interest) - your gross income
Then deduct your exempt amounts like basic interest, dividends and so on. That is your Income.

Now this is the key...you are allowed to deduct certain amounts from your income.
The more you can deduct, the lower your income tax!

SARS has substantially reduced the deductions most salaried persons can use - but not with RA's!

So, you must have a deduction into your RA!

You can deduct up to 27,5% of what you earn...to a maximum of R 350,000 in a year. This is for all of all your pension savings.

Does this all seem too technical?

The amount of your RA contribution tax deduction depends on how much tax you pay.
If you invest R1 000 and your marginal tax rate is 25%, you get a full 25% back, and your investment of R1 000 then only “costs” you R750.

So, SARS is paying R 250 of your retirement savings!
That means your investment has grown by 25% before it starts!
And then your investment still has to grow, so imagine what you final return could be!

That's the gift I am talking about. You must be crazy not to take it!

These tax savings can be substantial and can greatly improve the overall return on your investment!

Make sure you get your gift by getting SARS to contribute towards your pension!
Start a debit order into your RA today.

Start a RA or add a lump sum to an existing RA to bring your contributions up to the maximum amount you are allowed to deduct every year.

Let me help you do this.

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Please note:

The submission of this quote request does not constitute any legal obligation, either on your or Peter J Pyburn's behalf.
It is simply a request to be provided with some idea for retirement provision.
You agree that no fact finding or financial analysis has been done and that any purchase that may result is deemed as a once off need, based upon your personal judgment.
Any quote provided will be an indication of premium only. Should you decide to investigate further, the quote may change, depending on more comprehensive information being requested.
Any values provided are based on the limited information supplied at the time of the quote and may change with time.
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Your email address will never be given to any other person or organisation.
(I would never be in business if this happened!)

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Important Disclaimer:This content is for informational purposes only and does not constitute financial advice. Past performance is not indicative of future results.
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Last update: September 7, 2025