With a tax-free savings account (TFSA) for the near future and a retirement annuity (RA) for the future beyond.
PSG Wealth Retirement Annuity
A retirement annuity (RA), such as the PSG Wealth Retirement Annuity, is a tax-efficient investment product used to save funds for retirement. Its primary purpose is to help investors accumulate and grow their retirement savings so that they can earn an income from these savings after they retire.
Invest in an RA or top up your existing account to maximise your tax incentives before 28 February 2025.
PSG Wealth Tax Free Investment Plan
A tax-free savings account (TFSA), such as the PSG Wealth Tax Free Investment Plan (TFIP), is an ideal investment vehicle for saving funds for a goal whist growing capital efficiently (as no tax is paid on investment growth).
Investors can make withdrawals at any time, which allows for increased flexibility and makes a TFSA an ideal investment. Invest in a TFSA today or top up your existing account to maximise your tax incentives before 28 February 2025.
Maximise your tax incentives before 28 February 2025
TFSA contributions
- Start investing in a TFIP from R500 per month or
R6 000 once off. - You can make lump-sum, debit order or ad hoc contributions.
- You can contribute a maximum of R36 000 per year and R500 000 over the lifetime of the product.
The amount of savings accumulated in a TFSA will depend on factors such as the amount of money contributed and the amount of time over which an investor saves.
Our online calculators help estimate how much an investor should consider saving to meet their investment goals.
Retirement annuity contributions
- Start investing in an RA from R500 per month or
R20 000 once-off. - You can make lump sum, debit order or ad hoc contributions.
- Contributions are tax deductible up to a maximum of 27.5% of the highest of taxable income or remuneration, limited to R350 000 per tax year. Excess contributions may be carried forward to be deducted in the following tax year.
The amount of savings accumulated for retirement will depend on factors such as the amount of money contributed and the amount of time over which an investor saves. Our online retirement calculator helps estimate how much an investor should consider saving to meet their retirement savings goals.
Compound growth
Compound interest is a powerful force which can help you achieve your targets sooner – but its effects become more pronounced over time. Compound interest refers to the interest you earn on the interest you have already accumulated.
The benefits of saving in a tax-efficient vehicle like an RA and a Tax Free Investment Plan (TFIP) also add to the benefit of compounding. Whatever your underlying investment choice, it's important to reinvest your investment distributions. That's one of the key drivers of the benefit of compounding.
Optimise tax incentives before the tax year-end
Investors who focus on wealth creation make informed choices that can help optimise the value of their investment.
That’s why they choose investments that optimise tax efficiency. Watch the video to learn more about the tax benefits that a PSG Retirement Annuity and Tax Free Savings Account provide.
Compound Interest
Compound interest has been called the eighth wonder of the world – because over time, the interest that your investment earns, earns you even more.
To understand more about the power of compound interest watch the video to see the benefits of saving in a tax-efficient vehicle like a PSG Retirement Annuity or Tax Free Savings Account.
Frequently asked questions
What is PSG Wealth's tax year-end deadline?
28 February 2025.
Ensure the direct debit instructions (collections) and completed application and additional contribution forms are received in time.
Funds must reflect in our bank account on 28 February 2025; this means that electronic fund transfers must be made 48 hours before that date.
Who is a Tax Free Investment for?
Any individual who wants to generate tax-free capital growth on their investment.
Investors who want the flexibility to stop and start contributions when it suits them.
Individuals who want access to a range of underlying investment options.
Who is a retirement annuity for?
Any individual who wants to save for retirement or who wants to supplement their existing retirement savings.
Investors who want the flexibility to stop and start contributions to their retirement savings.
Individuals who want to be able to nominate beneficiaries.
Stay Informed
Sign up for our newsletters and receive information on finance.
