A good way to increase your retirement benefits…
At the moment you and your employer each contribute 6% of your pensionable salary to the Thacsa Fund for your retirement. While this is more than most South Africans, you can still do better if you have a little spare income.
Over and above your monthly contributions, you are able to do an additional voluntary contribution (AVC). You should really consider this for several reasons:
• Depending on your income level, there could be real tax savings.
• You have absolute control over the amount and frequency of an AVC. You can increase, decrease or stop the AVC at any point in time if your financial situation changes.
• The additional contribution you make will improve your pension savings and increase your share of fund.
• Your money will be safe from debt collectors. Creditors are not allowed to lay claim on any money in retirement funds, so your retirement savings will be protected.
• There are no additional fees; your AVC goes directly to your Fund Credit.
If you want to make an AVC to the Thacsa Pension Fund, please download the form here and return it to your HR department.
See the infographic below.
