Good news - you don't have to choose between the two.
Both a retirement annuity (RA) and a tax free savings account (TFSA) save you tax, but in different ways.
Your RA is a pension funding vehicle and contributing to it reduces your taxable income i.e. an immediate tax saving in your monthly income.
A TFSA gives you the tax relief at the end of the savings period by saving you paying capital gains tax, tax on interest income and dividends tax.
The tables below outline the rules and restrictions of each option. Make your choice wisely and remember you can allocate savings to both of them.
Invest in a Tax Free Savings Account or the Satrix Retirement Plan on SatrixNOW.
POSTED : 22 FEBRUARY 2021