STEP TWO:

Finweek English Edition - - MONEY -

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.”

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