Living Annuity Calculator
Our Living Annuity Calculator shows monthly income and how long savings may last, with 2.5%–17.5% withdrawals adjustable annually.
For accuracy, add up your retirement savings:
- Living Annuities
- Pension & Provident Funds
- Retirement Annuities
- Preservation Funds
- Other Savings
Enter your current Total Retirement Savings to see your potential fee savings.
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How this Calculator works
Enter your key retirement details, see the potential fee savings, then use the Living Annuity Calculator to test drawdown rates and see how long your savings will last.
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Living Annuities — Key Info
Drawdown Rules
Flexible retirement income.
A South African Living Annuity allows you to withdraw between 2.5% and 17.5% of your investment value annually.
You can normally adjust your drawdown percentage once a year, on your policy anniversary.
Higher withdrawals provide more income today but leave less capital invested for the future. Choosing a sustainable drawdown is important for protecting your long-term retirement savings.
Tax & Beneficiaries
Protect your income and legacy.
Living Annuity income is generally taxed as ordinary income, with PAYE deducted by your provider. Your tax depends on your total taxable income and available rebates.
When you die, your nominated beneficiaries can generally receive the remaining capital as cash, an annuity or both, subject to applicable tax rules.
Keeping your beneficiary nominations updated helps ensure your retirement savings benefit the people you choose.
How We Calculate
Plan your retirement income.
Your monthly income depends on your annuity value and chosen drawdown percentage.
Monthly Income = Capital × Drawdown ÷ 12
For example, R10 million at a 5% drawdown provides approximately R41,667 per month before tax.
Investment returns, fees and withdrawals affect future capital. Calculator projections are not guaranteed.
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Already have a Living Annuity?
Use your current provider’s figures to check your income, fees and options.
Using Allan Gray, 10X Investments, Momentum, Sanlam, Old Mutual, UCTRF, Liberty, Smart About Money, etc?
This calculator works for a Living Annuity with any provider. Enter age, retirement age and total retirement savings, which is Living Annuity’s value on your latest statement.
You’ll see your estimated monthly income before tax and how long your capital could last at your chosen drawdown rate. Then test a different rate to see what changes.
How much do fees change my income?
Fees are charged whether markets rise or fall, so what counts is your return after fees. A higher fee must earn its keep.
For your income to be sustainable, that net return needs to keep pace with your drawdown rate plus inflation.
The calculator’s fee comparison step shows what you could save. Ask your provider for your EAC: all fees as one yearly percentage.
Can I move to another provider?
Yes. A Section 50 transfer under the Insurance Act (formerly Directive 135) helps maintain continuity of income from one month to the next. You can’t merge two Living Annuities into one.
We can help check for exit fees or penalties with your current provider before you switch, and compare total costs on both sides. An independent review can show whether a move is worth it.
Living Annuity Calculator FAQs
Living Annuity Calculator FAQs answer common questions to help you understand how a living annuity works and how to plan your retirement income more effectively.
How much can I draw monthly?
Your Living Annuity income depends on your total investment value and chosen annual drawdown rate, between 2.5% and 17.5% pa.
Divide your annual withdrawal by 12 to estimate your monthly retirement income before tax.
How is a 5% drawdown calculated?
At a 5% annual drawdown, multiply your current investment value by 5%, then divide by 12.
For example, R10 million provides approximately R41,667 per month before tax, based on your initial capital.
How long will my Living Annuity last?
Living Annuity sustainability depends on your drawdown rate, investment returns, fees and inflation.
Lower withdrawals may help preserve capital, but your retirement income and investment growth are not guaranteed.
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