Calls Grow to Raise South Africa’s Tax-Free Savings Limits

Summary

There are growing calls in South Africa to increase the tax-free savings account (TFSA) limits. Old Mutual, a major financial company, suggests that the annual contribution limit should be raised to R40,000, up from the current level. They also propose increasing the lifetime limit for these accounts to R600,000. Tax-free savings accounts allow South Africans to save money without paying tax on the interest or returns earned. Increasing these limits would encourage more saving and help people build larger financial cushions over time. This could be especially important as many South Africans face ongoing economic challenges and need to grow their savings faster. The proposals come ahead of the national budget announcement, where changes to tax and savings rules are often decided. Experts believe that higher limits could help more people save for emergencies, retirement, or other goals more effectively.