Take out a retirement annuity (RA) in addition to your pension fund and get tax back.
A retirement annuity is a tax-effective investment vehicle ideal for those who want to supplement their pension.
Open a tax-free savings account and you will not be taxed a single cent on any of the returns on this investment.
Tax-free savings accounts are part of the government’s drive to encourage people to invest and save more for their future. You can save up to R500 000 tax-free and it will grow with compound interest.
Save in a unit trust. This medium-term savings vehicle is ideal for putting money aside for your children’s education.
A unit trust is an investment portfolio that is managed as a collective investment scheme and is divided into equal parts or ‘units’. Unit trusts buy you shares in a fairly safe portfolio along with those of all the other participants in the trust.
For short-term savings, save your money in a money market or fixed deposit account. This is ideal for lump sums.
A money market account is an interest-bearing account at a bank. Most money market accounts pay a higher interest rate than a regular savings account, but also come with restrictions that make them less flexible.