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<\/a><\/p>\n“If your total contribution to your employer\u2019s umbrella fund for the year is not 27.5% of your remuneration, you can maximise your tax benefit by making an additional voluntary contribution to the umbrella fund before the end of February, if the fund\u2019s rules allow for this,” Sonday said.<\/p>\n
\u00a0<\/b>When is the best time to make top-up investments to your umbrella fund?<\/b><\/p>\n
\u201cNot everyone can afford a monthly salary reduction to take advantage of the maximum tax benefits. In this case, it is worth considering making top-up investments into the fund when you have money to spare. Speak to your payroll administrator to make this happen,” Sonday said.<\/p>\n
Other options<\/b><\/p>\n
If your umbrella fund\u2019s rules don\u2019t allow, you could consider opening a retirement annuity fund (RA). This is a retirement savings product that you own in your personal capacity.<\/p>\n
\u201cAn RA is like a personal pension plan. It is not dependant on employment. You can usually stop and start contributions as you need to and your investment is safeguarded for your retirement,\u201d he said.<\/p>\n
Sonday suggests that investors who plan to make use of this tax concession invest as soon as possible to allow for the investment to process before the 28 February deadline.<\/p>\n
\u201cThere are no disadvantages with making the most of the tax incentives now, which have been put in place to help you save. When it comes to saving for retirement, now is always the best time to contribute as much as you can afford,\u201d he said.<\/p>\n
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