As South Africans move beyond the financial strain of Januworry, experts are urging households to revisit one of the most effective yet underutilised investment tools: the tax-free savings account TFSA. Diane Behr, director at Foord Asset Management, notes that while TFSAs have been available since 2015, many investors either overlook them or fail to use them to their full potential. This is a missed opportunity, as TFSAs offer one of the rarest advantages in personal finance growth that is never taxed.
Unlike traditional savings or investment vehicles, contributions to a TFSA are capped annually, but all returns, whether interest, dividends, or capital gains, remain exempt from tax. Over time, this allows compounding to work more effectively, building wealth steadily without erosion from tax obligations. For South Africans balancing festive spending and back-to-school costs, February provides an ideal moment to refocus on long-term financial planning.
With the 11th anniversary of TFSAs approaching in March 2026, financial advisers emphasise that these accounts should form a cornerstone of any diversified portfolio. They are particularly valuable for younger investors who can maximise decades of tax-free growth, but equally beneficial for families seeking stability in uncertain economic conditions. By integrating TFSAs into a broader strategy, households can strengthen their financial resilience while keeping future goals firmly in sight.
