RA tips for beginners: How a Retirement Annuity boosts your savings

Want to pay less tax and boost your savings pot at the same time? There’s a financial product called a Retirement Annuity that will help you do this – provided you choose your RA with care.
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EDINBURGH — Want to pay less tax and boost your savings pot at the same time? There's a financial product called a Retirement Annuity (RA) that will help you do this – provided you choose your RA with care. "Any money you invest in an RA is tax deductible. This means you can deduct the amount you have invested from your annual income and reduce your taxable income. You therefore pay less income tax or get a refund from SARS when you complete your tax return." – Jackie Cameron

RA tips for beginners: How an RA works

An RA is an investment shell that has special tax arrangements attached to it. You can only put certain kinds of investments into it.

RAs lock your money in until you are at least 55, though it is possible to cash in an RA in some circumstances (for example emigration or if you are permanently disabled).  No-one else can touch this money, either: so if you owe money your creditors can't access your RA savings.

___STEADY_PAYWALL___

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