Savings with Tax Benefits
In this course we will look at two broad types of savings that provide tax benefits:
- Tax-free investments which are also sometimes called Tax Free Savings Accounts
- Retirement Funds, which can be split into the following sub-categories:
- Pension Funds
- Provident Funds
- Preservation Funds
- Retirement Annuities
All of the above types of savings methods have been introduced by government to encourage South Africans to save for the long-term.
The most important thing to remember about long-term savings is that the tax (and savings) benefits are increased the longer you save. So it is important to start saving as early as possible.
The following video is not about tax, but explains the benefits of compound interest, and without even considering the tax benefit, why it is so important to start saving as early as possible.