Need a #reasontosmile? Then you've come to the right place…
If you have a retirement annuity…
… then you have a reason to smile: you can get money back from SARS by topping up your retirement annuity before 28 February.
3 easy ways to top up your retirement annuity:
For help in topping up your retirement annuity, speak to your PPS Financial Adviser today or contact the PPS Investments Client Services Centre on 0860 468 777 (0860 INV PPS) or email email@example.com.
If you have maxed out our retirement contributions for the year but want boost your retirement savings without paying tax, then click here.
If you do not have a retirement annuity…
… there's no reason to frown - you can apply for a retirement annuity here and get your reason to smile - fantastic tax benefits and getting money back from the taxman!
For more information contact your PPS Investment Accredited Financial Adviser or the PPS Investments Client Services Centre on 0860 468 777 (0860 INV PPS) or email firstname.lastname@example.org.
Why should I top up my retirement annuity?
A retirement annuity (RA) is specifically designed to save tax-efficiently for retirement. The more you contribute towards your retirement annuity in a tax year (up to a certain limit), the more tax benefits you will get.
How does the tax benefits work when I top up my retirement annuity?
When you save for retirement in a retirement annuity, a portion of the total contribution in any given tax year is tax deductible. This means that it can be claimed back from SARS and it will not have any impact on the value of your investment. In essence, you are being incentivised for saving for retirement.
What is the maximum tax benefit that I can claim back in a tax year?
The maximum tax deduction for all contributions to retirement annuity funds, pension funds and provident funds, is 27.5% of remuneration or taxable income (whichever is the greater). The annual maximum tax deduction limit is R350 000.
What happens when I exceed the maximum tax deduction limit for the year?
If you contribute more than the allowable tax deduction limit, you can claim this amount in future tax years. For example, you can use the deferred tax benefit to reduce the taxable portion of a lump sum payment when you retire, or to supplement your annuity payments in retirement.