In South Africa, up to 15% of your income can be saved towards retirement tax free, providing you invest in a retirement product. The cash injection from the tax man is a great incentive to invest at least 15%. “This might seem a frightening number, but remember one gets tax relief on retirement fund savings,” Ongley says.
Magnus Heystek Jnr, a CFP at Brenthurst Wealth Management, advises, “It’s recommended that at least 15% of your gross annual salary be saved from non-retirement funding income, but 20% would be signif icantly better to make provision for retirement. It’s important that tax deductions be maximised while saving for retirement.”