Retirement / Savings & Investments

Is there any tax benefit in saving over the annual tax deductible amount towards retirement?

One of the key benefits of investing for retirement using a retirement fund is the generous tax deduction for contributions, subject to a maximum of 27.5% of the greater of your taxable income or remuneration, with an annual ceiling of R350 000.

February could 'make or break' for your tax plan

Act quickly and save money by topping-up your retirement annuity – or by investing today

As the end of the South African tax year approaches, you have the opportunity to get a contribution to your retirement savings from the government. One way to do so is by topping up your retirement annuity (RA) or by investing in a new RA if you haven’t yet. Not only will you reduce your tax liability, but also boost your retirement savings and earn compounding tax-free returns (within the fund).

Preserving wealth across generations

In fact, this aversion to the loss of money is so significant it has become the subject of a substantial number of studies. The “pain” that is felt when people lose money is stronger than the “joy” of a gain. And it is even more pronounced when a person has worked hard to build their capital base, often through diligent behaviour and determination, over many years – possibly even a lifetime.