Tax efficient
Up to 27.5% of remuneration via retirement fund contributions can be deducted for tax purposes. There are also tax breaks on the lump sums taken at retirement.
Growth on retirement fund investments is tax free
Unlike most other investments, retirement funds pay no tax. No income tax on interest, no dividend withholding tax and no capital gains tax. These advantages have the effect of boosting investment returns.
Retirement fund benefits on death are free of estate duty
Which is a considerable advantage. The only possible exception is that estate duty might apply to contributions which exceed tax-deductible limits.
Retirement funds cannot be touched by creditors
For example, in the event of insolvency, unlike in the case of other assets, creditors cannot attach retirement funds