The starting point for any retirement tax conversation is the age-based tax threshold. Stay below the age-based tax thresholdMatela says the starting point for any retirement tax conversation is the age-based tax threshold. For the 2027 tax year, retirees between the ages of 65 and 74 pay no income tax on annual earnings below R153 250, approximately R12 770 per month. Unlike a living annuity drawdown, which is taxable, TFSA withdrawals incur no income tax, capital gains tax, or dividend tax. They are those who understood, early enough, that the source of retirement income matters just as much as the size of it.”