Those close to retirement won't be affected by new tax legislation

The new tax legislation signed into law by President Jacob Zuma contains a provision ensuring that those who are close to retirement won't be affected. This is according to Michael Prinsloo, Head of the Best Practice, Research and Product Development division at Alexander Forbes.

The new legislation, which comes into effect from March 1, changes the way contributions to retirement funds are taxed.
Currently all retirement funds including the pension fund, provident fund and retirement annuity have different tax deductibility regimes on the contributions. However from March, there will be a 27.5% maximum deductibility across all three funds.