J & J Financial
Services
RETIREMENT PLANNING
A Retirement Annuity is an efficient and important way to save for retirement because:
You save tax
Your retirement annuity contributions reduce your taxable income up to certain limits: part of your contributions come from tax savings, which means that the South African Revenue Service (SARS) is actually paying a part of your retirement savings.
Another big tax advantage is that the growth on your investment is tax free!
Your savings provide you with an income in your retirement years
When you retire, you may take up to one third of your accumulated savings in a cash lump sum. The rest is used to provide you with a monthly income.
Your savings is protected from your creditors
Your retirement savings are safe irrespective of any personal financial loss you may suffer. This ensures that your savings will be available when it is most needed and for what it is intended – the provision of your retirement income.