Tax Free Savings Vs. Retirement Annuities

What to consider for your long-term savings

Tax-free Savings Accounts (TFSAs)

TFSAs were introduced by National Treasury to create a savings culture in South Africa. This account allows people to save without having to pay tax on the returns earned, making it a perfect long-term investment strategy.

The current thresholds for TFSAs are as follows:
A maximum of R36000 per annum.
A lifetime maximum of R500000.
TFSAs allow any investor, regardless of their income level, to earn interest on a range of investments or savings instruments without having to pay income tax on the returns.

A TFSA can be opened in a few quick steps. You can…