It is time to review your retirement planning and to ensure that you use all your tax benefits, even if they are not enough. Listening to the experts, it seems a bit like a game of give and take, although the tax man will always take his portion.
Adriaan Pask, CIO at PSG Wealth, says as we approach the tax year-end at the end of February, many South Africans will be planning to top up their retirement annuities RAs and tax-free savings accounts TFSAs.
The discipline of maximising your annual R350000 RA deduction limit and R36000 TFSA allowance is the ideal foundation of a tax-efficient retirement plan. However, these important vehicles should be enhanced by equally disciplined broader savings and investment decisions to ensure you build the amount of retirement funds you will actually need.
