The tax year is coming to an end soon. Make sure you score by investing in a retirement annuity (RA) or topping up your existing RA. There are many benefits to an RA and below are some of them:

1. By contributing towards a retirement annuity, you increase your chances of retiring financially independent. The sooner you start investing in an RA, the better as you would also benefit from compound growth.
2. Your contributions to a retirement annuity are tax deductible. You can reduce your taxable income by contributing up to 27,5% of your earnings up to R350 000 per year. If you contribute more than R350 000, the contributions in excess of the R350 000 roll over for future tax deductions.
3. When you invest in an RA, you lower your taxable income and thereby stand a chance of getting a tax refund and the higher your contributions are, the higher your tax refund could be.
4. Growth on your RA is tax free so you don’t pay tax on all of you returns. You don’t pay tax on interest, dividends or capital gains.
5. If you ever hit hard times, your creditors cannot attach your retirement savings as they are protected from creditors by law

This is the perfect time to implement your 2025 personal finance goals! Contact us.