Section 10C: Tax Free Retirement

Ruvan J Grobler • March 19, 2025

Saving for retirement has become somewhat unappealing for many investors. This is due to the lack of flexibility and many moving parts that make it complex. Treasury has been trying to combat the flexibility issue with the introduction of the two-pot system in September 2024. These structures do however have major tax advantages.

 

According to Section 11F of the Income Tax Act, you are allowed to deduct annual contributions made to any pension fund, providend fund or retirement annuity fund. The annual limits are set out as follows to the lesser of:

(i) R350 000;
(ii) 27,5% of the higher of –

• remuneration; or
• taxable income; or

(iii) taxable income of that person before –
• including any taxable capital gain.

 

According to the provisions set out in Section 10C of the Income Tax act, contributions from previous years that were not deductible at the time will be carried forward to the current assessment year unless they were deducted from a retirement fund lump sum, withdrawal benefit, or offset against a compulsory annuity. Arrear contributions are added to the current year's contributions and treated accordingly.

 

Ultimately, these disallowed contributions can be used to offset retirement income until the rollover is depleted. Because it is seen as a deduction against gross income, planning can be done in such a way that no income tax is payable for many years into retirement. The disallowed contribution can also be used to increase the tax-free portion of your 1/3 allowable retirement lump-sum.

 

Important Considerations

Upon the investor’s death, the beneficiaries of the annuity will have a choice. They may either take their portion in cash and pay the withdrawal tax, or they can proceed with the annuity. If they decide to take their portion in cash, that portion of the annuity will unfortunately be included in the estate. This consideration will make disallowed contributions less attractive for investors with offshore beneficiaries.

 

Ruvan J Grobler RFP™ (PGDip Financial Planning)

South Africa has been removed from the Grey List.

By PJ Botha • October 30, 2025
South Africa has officially been removed off the Financial Action Task Force's (FATF) grey list as of October 24, 2025. This comes after 33 months of work to strengthen the country's anti-money laundering and counter-terrorism systems. Why Was South Africa Grey Listed in the first place? In February 2023, the FATF placed South Africa on the grey list due to weaknesses in its ability to enforce anti-money laundering regulations. These included ineffective investigations and prosecutions, particularly in severe money laundering and terrorist financing cases. To get off the list, South Africa needed to accomplish 22 action items. By June 2025, the FATF reported that all items had been handled. Although some areas, like as prosecutions, require improvement, this did not prevent the country from being removed from the list. What is the Function of the Financial Intelligence Centre (FIC)? The Financial Intelligence Centre helped South Africa achieve FATF regulations. It enhanced how it oversees businesses and professions that deal with money but are not banks, employing stronger risk assessment tools and compliance measures. The FIC also collaborated extensively with law enforcement, promoting the use of financial intelligence in investigations. This resulted in genuine results, such as the freezing of approximately R157 million in suspected illegal funds and the recovery of nearly R144 million in stolen money. What impact did the listing have on the Economy and Investments? Being on the Grey List increased the cost and complexity of foreign transactions. It also harmed investor confidence, particularly while South Africa holds the G20 presidency in 2025. Financial experts predict that now that the country is no longer on the list, investor sentiment will improve. According to PPS Investments, this may lead to: Improved access to global capital. A stronger Rand. Increased interest in South African stocks A better climate for the local property markets. This change contributes to a more favourable view for South Africa's economy and investment landscape. How do South Africa compares to other countries that was grey listed? South Africa's 33-month stint on the grey list is comparable to other countries. Tanzania required 33 months, Nigeria 25 months, Mozambique 37 months, and Burkina Faso 57 months. What's next? South Africa is already planning for the next FATF mutual evaluation, which is scheduled for 2026-2027. The FIC states that, while leaving the grey list is a significant step forward, the country must continue to improve its mechanisms for combating financial crime.

What Will You Do Every Day in Retirement?

By Francois Le Clus • October 30, 2025
Have you ever stopped to ask yourself: What will I actually do every day when I retire? It sounds like such a simple question, yet very few people think about it in a practical way. You might have a plan for your finances, but have you thought about your time? Will your days be filled with purpose and activity—or will you find yourself just sitting around, wondering what to do next? From my experience working with retired clients, people tend to go one of two ways: they either become passive or they stay active and engaged. When you first retire, the main concern is usually financial. Will my money last for the rest of my life? But after a few months, that anxiety often fades, and a new question emerges: What is my purpose now? I recently read a remarkable book by Bob Buford called Halftime. Buford was extremely successful financially, but tragedy struck when he lost his son. That loss made him reflect deeply on what truly mattered in life. He realized that while money is important, purpose is what gives life meaning. Buford explains this through the Sigmoid Curve : Curve 1 represents the first part of your life—learning, growing, and mastering your craft. This typically takes you up to around age 50, when you might feel like you’ve reached a plateau or are just coasting toward retirement. Curve 2 is the next chapter—when your focus shifts from inward to outward, from success to significance. This is where you find fulfillment by contributing, giving back, and making a difference in your community. The retirees who thrive the most aren’t the ones who just relax all day. They’re the ones who stay involved, serve others, and wake up each morning with a sense of purpose. A Final Thought The Bible tells us that Abraham had his first child at the age of 100, and his wife Sarah was 90. That story reminds us that no matter your age, there’s still a promise and a purpose over your life. You still have something valuable to give. So as you plan your retirement, don’t just think about your finances—think about your purpose. Don’t be passive. Be active. Be intentional. Live with purpose.