How to Save More

designbythink 2017, Quarter 4 Newsletter 2017

How to Save More

Your retirement savings MUST be tax efficient. There are a number of options to consider:

In the Fund:

1 R150 (or more) Additional Voluntary Contribution (AVC). The form is available here.
2 Additional contributions via the Modelling Tool.

Externally:

1 A Retirement Annuity (RA) from an insurance company – the contributions you make are tax efficient.
2 Open a tax-free savings account.
3 Invest in retail government bonds.
4 Invest in an ordinary unit trust fund.
5 Owning a second (or more) property for rental.

This combination will give you more flexibility in terms of investment choice and the ability to access your investment.

The bottom line: You have to sacrifice income today in order to save and have a comfortable future. Think about this a little differently – you work now to save for when you are old and need to pay yourself an income. When you have retired, you pay yourself with the money you have saved. So your retirement is entirely in your hands.