South African retirement tax trap

• Unused retirement contributions can be worth up to 45% in tax relief if used correctly.
• The balance belongs to the taxpayer, not a specific retirement fund, and can be used as a deduction against taxable income in a later year.
• Taxpayers who use their unused retirement contributions incorrectly may lose valuable tax savings, and the government is proposing to increase the annual cap on deductions to R430,000 in the 2026 Budget Speech.