Dear Valued Member,

In the 2026 Budget Speech, the Minister of Finance announced key changes to retirement savings that may affect your planning and how you access your funds. These reforms take effect 1 March 2026 and are designed to help you save more, access benefits more easily, and make the most of your retirement.

1. Higher Tax Deduction for Retirement Contributions

From: R350 000 → To: R430 000

This change allows eligible members to claim a larger tax deduction on retirement contributions. The 27.5% of taxable income (or remuneration) rule still applies.

Why it matters: You can contribute through Additional Voluntary Contributions (AVCs) to your retirement fund, helping you:

• Grow your retirement benefit
• Improve your long-term financial security
• Potentially reduce your taxable income

Speak to your salary department to arrange monthly AVC deductions. You decide the contribution amount.

2. Tax-Free Savings Account (TFSA) Limit Increase

Yearly limit increase from R36 000 → R47 000

Why it matters: This provides another tax-free savings avenue for retirement or other financial goals.

3. Higher Cash Withdrawal Limit at Retirement

Total retirement balance limit: R247 500 → R360 000

Old threshold: You could take cash if two-thirds of your vested component plus your full retirement component was R165 000 (two-thirds of R247 500) or less.

New threshold: You can now take cash if the same total is R240 000 (two-thirds of R360 000) or less.

Why it matters: Greater flexibility to access smaller retirement savings in cash at retirement.

4. Proposal for a Central Unclaimed Benefits Fund

Government plans a central fund to hold unclaimed retirement savings from all retirement funds.

• Purpose: Make it easier to trace and claim old or unclaimed retirement savings.
• Impact for members: Your unclaimed benefits will be safer and easier to recover.

Tip: Keep your contact details and beneficiary information updated with all retirement funds to ensure your savings can be traced and claimed efficiently.

• No VAT increase — the standard rate stays the same.
• Inflation adjustment to personal income tax tables and rebates — this may reduce the amount of tax you pay.
• Updated medical tax rebates — tax relief for medical expenses has been adjusted.
• A more favourable tax table for micro businesses — benefits small business owners.

• Increase in offshore discretionary allowance — more flexibility for investing overseas.
• Adjusted capital gains tax exclusions — changes in how much capital gains may be tax-free.
• Raising the compulsory VAT registration threshold — small businesses may register for VAT at a higher turnover.
• Increase in the minimum threshold to commute a living annuity from R125 000 to R150 000.

Current rules: If a member has already taken money from their savings component during the tax year and they resign, they can only take the remaining balance when leaving the Fund if it is less than R2 000.

From 1 March 2026: Members will be able to take the full balance of their savings component when leaving the Fund, no matter the amount and even if they have already made a withdrawal that year. The money will be taxed at the member’s normal income tax rate, and the Fund will deduct the tax before payment.

If you would like to understand how these changes affect your personal retirement planning, or if you would like to explore making Additional Voluntary Contributions, please contact the Fund’s appointed financial advisers:

PORTFOLIUM — 📞 (012) 880 5981

or the Fund’s Retirement Benefit Counsellors:

INFUND SOLUTIONS — 📞 (012) 880 5983