RESULTS OF RETIREMENT-SAVING SCENARIOS TABLE 1: 7.5% income from a living annuity and a discretionary portfolio Product Value Taxed as Retirement portion R5 944 498 Income Discretionary savings R2 149 454 Capital gains R8 093 952

Annual Tax payable Net total income received R445 837 R92 447 R353 390 R171 956 R19 002 R152 955 R617 794 R111 449 R506 345

TABLE 2: Income from a living annuity only Product Value Taxed as Retirement portion R8 916 301 Income Non-retirement portion R0 Capital gains R8 916 301

Annual Tax payable Net total income received R690 000 R180 778 R509 222 R0 R0 R0 R690 000 R180 778 R509 222

TABLE 3: Saving 15% in a retirement fund and 12.5% in a discretionary portfolio Product Value Taxed as Retirement portion R4 971 667 Income Non-retirement portion R2 799 354 Capital gains R7 771 021

Annual Tax payable Net total income received R372 875 R71 939 R300 936 R223 948 R24 609 R199 339 R596 823 R96 548 R500 275