Where to invest savings for optimal growth and tax efficiency
By Danine van Zyl
Where to invest for retirement remains the top priority for most investors when they seek professional financial planning advice. The majority select a retirement annuity as the most logical option for their needs. However, this might not always be their best or only option.
Danine van Zyl
Saving for retirement through retirement annuities and preservation funds has always been widely recommended due to the tax benefits available. Investors are entitled to a tax deduction on their contributions of up to 27,5% of their taxable income or remuneration but limited to a maximum of R350 000. Growth on the investment is further free of any capital gains or dividend withholding tax implications – the objective being to encourage investors to save towards their retirement to avoid them from ultimately becoming dependent on government support. Controversial legislation, designed to protect investors,