What comes top of mind when you think “End of Feb”? Here’s one of the things your retired future self will thank you for one day

Besides the fact that the ‘month of love’ due to Valentine’s Day has come to an end, it’s quite common to think “The end of Feb is the end of most company's or business' year of assessments/tax year. For others, it is around the time they submit the 1st of their bi-annual tax returns or assessments. You may remember, Feb is also the ‘RA Season’.

Mid-December has hit and with just 10 days before Christmas, 17 days before The New Year and about 23 days before most go back to work after the holiday season, I am sure the last thing many want to read about is some sort of Retirement Contribution Reminder. But, is this not the perfect time to remember that the 1st of March 2016 braced us as individuals with an opportunity to contribute up to a maximum of 27.5% of your salary/taxable income on existing RAs or into a new RA while saving on tax and with a great advantage to further boost one’s retirement capital. The full amount will be allowed as a tax deduction, limited to a maximum of R350 000 per annum.

Why this talk in December? One may wonder. Why not? While others may get 13th cheques, others bonuses and some may have a little excess cash from savings they have accrued, very few think to add a little boost to their RAs and when the “RA Season” hits, usually in the month of Feb, there might not be enough excess cash for a lump sum contribution to an RA to maximise on the 27.5% contribution assuming you have not yet reached this maximum.

Add a little bonus to your Retirement Annuity and get a little closer to maximising your 27.5%. Save a little more on tax. Boost your Retirement Capital.

Your retired future self will thank you one day.