JOHANNESBURG – The appeal of a foamy cappuccino or a steaming espresso is strong, but remember the experience is short-lived. By sacrificing just one cup of coffee every day, you can save enough money over time to help build a useful nest egg, especially if you stash the savings into a tax-free savings account (TFSA).
Research commissioned by Old Mutual into the financial behaviour of employed millennials found that only 44% are investing in pension or provident fund, preferring to only start putting money away for retirement late in their working lives.
Meanwhile, the 2018 Old Mutual Savings and Investment Monitor shows that 1 in 3 baby boomers have NO formal retirement fund provision.
“With a tax free savings account you pay no income tax on interest generated, no capital gains tax and no dividend withholding tax. This means your money is free to grow,” says Marius Pretorius, Head of Marketing: Retail Savings and Income Solutions.
“What also makes a Tax Free Savings Account popular is its flexibility and accessibility. You can withdraw your funds at any time with no penalties, and access them through most major financial services companies and banks.”