Tax saving plans: ways to maximize retiree’s funds

Saving for your retirement can come with tax benefits. Read on to understand more on this.

13:32 28 April 2013

Paying taxes is just one reality of life. You need to pay tax on your income whether you like it or not. However, there are certain things that you can do to minimize the tax that you pay.  

You can enjoy tax benefits by investing a part of your earnings in tax saving schemes. These types of investments come with different features and benefits. By reducing your tax, or by getting break granted from the government, a substantial part of your income can be used to increase your retirement fund. 

 

One of the investment vehicles that you should consider could be ISAs (Individual Savings Account) – as you can use these to invest money in stocks and shares. Subject to allowance limit, the interest and dividends that you earn from this is tax-free.

 

Another way to save on tax is to invest in life insurance policies. Under the Income Tax Act 1962, the premiums that you pay for this type of plan are tax-free. 

 

Investing in health insurance also offers tax benefits. Just like with life insurance policies, the premium you pay for health insuranceis not taxable.