Move 2: Boost your retirement savings with a tax-friendly RA
The second smart move? Don't delay saving towards a comfortable retirement. After all, you've worked really hard for the lifestyle you've become accustomed to, so you deserve to kick back and enjoy it when you retire. What's more, you'd want to do this as tax efficiently as possible – in other words with a retirement annuity.
A retirement annuity has been designed to offer you an annual tax deduction of up to 27.5% of your gross remuneration or taxable income (whichever is higher), up to an annual limit of R350 000. That tax break you are getting, compounded over many, many years, adds up to a massive saving.
To boost your savings even more, the Sanlam Cumulus Echo Retirement Plan will give you an Echo Bonus – an additional amount of money that will be added to your retirement savings when you retire. The longer you invest and the higher your payments, the bigger your Echo Bonus will be.
And when you get to retirement age, you can take up to one-third of your retirement savings in cash for whatever you have on your bucket list – while the rest of your savings pay you monthly income or pension. All you need to do is start putting away R350 or more per month, and keep saving for the retirement you will deserve after years of hard work.