Taxation changes

RISKSA Magazine - - LONG-TERM -

In his Budget Speech ear­lier this year, Fi­nance Min­is­ter Pravin Gord­han changed the way that re­tire­ment fund with­drawals are taxed, mak­ing it less at­trac­tive for people to ac­cess their sav­ings be­fore re­tire­ment and more at­trac­tive for them to pre­serve their sav­ings. With ef­fect from 1 March this year, if a client changes jobs and with­draws a lump sum from their re­tire­ment fund, the first R25 000 will be tax- free. How­ever, the tax they pay on sub­se­quent with­drawals has now been in­creased to dis­cour­age them from ac­cess­ing your re­tire­ment sav­ings.

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