Reform of retirement savings to go ahead

Dear Client,

Something positive to end the year off with, herewith some highlights in terms of planned Retirement Reforms:

• Tax deductible contribution to ALL retirement funds: 27,5% to a maximum of R 350 000;
• The minimums rule move from R75 000 to R 247 500 – less than that in RA/Pens/Provident fund, you do not have to buy annuity at retirement;
• Provident Funds at retirement = 1/3 and 2/3, just like Pension Funds and Retirement Annuities. However, only applies to provident fund contributions made after March 2016. All contributions before March 2016 (and the growth thereon over the years) to be excluded from this rule.
• Planned implementation date is 1 March 2016.

Seeing that the financial year end (28 February 2016) is approaching fast, please contact me should you need advice on your retirement annuities for tax purposes.


Regards,

Tersia van Nieuwenhuizen
Independent Contractor to Discovery Life
Direct: +27 21 975 3199
Fax: +27 21 975 3995
Email: tersiav@ic.discovery.co.za
URL: www.discovery.co.za

An authorised financial services provider - FSP No. 18147