Cape Town - Old Mutual legal adviser Tristan Naidoo told Fin24 in studio that the new tax breaks announced in the budget speech by Finance Minister Pravin Gordhan for retirees is a big incentive.
He explained that if a retiree took out R1m, in terms of the current tables, then it would attract an effective tax rate of over 16%. This boils down to about R161 000.
Under the proposed changes, pension fund holders can save up to R44 500 in tax on a withdrawal of R1m.
Watch:
- Fin24
He explained that if a retiree took out R1m, in terms of the current tables, then it would attract an effective tax rate of over 16%. This boils down to about R161 000.
Under the proposed changes, pension fund holders can save up to R44 500 in tax on a withdrawal of R1m.
Watch:
- Fin24