The example is based on a monthly payment of R2 500 for 16 years and 8 months, when the lifetime limit of R500 000 is reached. It assumes an investment in a balanced fund with a return of inflation plus 4% per year before fees, and a personal tax rate of 40%. These values are not guaranteed and are for illustrative purposes only.
Tax saving: R495 100
This is the tax saving on your investment return in a tax-free savings account.
Investment Return: R1 063 500
This is the investment return a plan would have earned if the investment return was taxed.
Payments: R500 000
These are the total payments made into a tax-free savings account.