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Cape Town - You need to consider the impact of tax when planning for your retirement, but it shouldn’t be your primary concern. That said, you should factor this in when saving for retirement, and also during retirement, given that tax is treated differently before and after retirement.
Broadly speaking, the taxation process can be summed up as “exempt-exempt-tax”, consistent with regulations in many countries globally.
You are exempt from tax on contributions made while saving for retirement (up to certain limits), you are exempt from gains on the investment(s) while you are saving, but you are subject to income tax upon retirement as you draw an income (annuity) from your retirement savings.
