Holistic retirement

OPTIONS: NOW'S THE TIME TO RE-EVALUATE YOUR SAVINGS PLAN

- Jaco Fouché

With the end of the tax year approaching, it's an excellent time to evaluate your retirement options. If you don't already have a retirement annuity (RA), now may be a particularly opportune moment to open one.

Consider the main ways to save for retirement

In South Africa, most individuals focus on one or more of the following options:

Factors to consider before you start

Tax benefits

Pension funds and RAs allow you to save on tax by investing up to 27.5% of your taxable income (capped at R350 000 per year) and deducting that amount from your taxable income. This not only reduces your immediate tax liability but also enables your investments to grow tax-free.

Investment options

Gone are the days when your RA investments were restricted to a few limited choices. Modern RAs offer transparency, flexibility, and a broad selection of funds.

You can switch between investments and even transfer your RA to another provider without incurring penalties.

Your risk profile and investment horizon