With increasing costs, many are looking for great bargains, with maximum benefit at reduced costs.

Have you considered your tax costs and the options you have available to reduce the costs by topping up your pension or provident fund contributions?

Not only will you reduce your tax liability, but also boost your retirement savings and earn compounding tax-free returns (within the fund). Faced with the question of whether to pay taxes or save, most will agree that the latter is the better option.

By increasing your contribution to your Retirement Fund, you will be able to increase your monthly tax deductibility and effectively pay less tax. Remember that all contributions to approved retirement funds are tax deductible up to 27.5% of your annual income or remuneration, but capped at R350,000 per annum. The more you put in, the more you get out.

The compounded growth within a retirement fund does not attract income tax, dividend tax or capital gains tax, which contributes further to your savings. Another point to consider is that when a Group Pension or Provident Fund is in place, a creditor is not allowed to lay claim on any money that lies in your Retirement Fund, thereby protecting your retirement savings from debt collectors. The same will count for any lump sums that you make toward your Retirement Fund, making it a great way to protect your savings.

The true power and reason for investing is for you to work less and for your money to work more. Keep your eye on the areas of investment you can control, like fees, how soon you get started, and how you maximise your tax benefits.