Fast-track your retirement savings
Fuel your savings growth with a one-time lump sum investment and enjoy a tax rebate! By topping up your Investo Retirement Annuity from Momentum Savings now, you can maximise your tax savings before tax year-end in February 2025.
Boost your retirement savings with a single lump sum to:
- Increase your growth potential.
- Get tax breaks equal to the tax rate you pay.
- Recover from your two-pot savings withdrawals.
Why boost your retirement savings with a top-up?
Many South Africans find it challenging to retire comfortably. Over time, inflation also eats away at your investments.
Investing in an Investo Retirement Annuity monthly, is an excellent habit that will benefit you, greatly. But if you top that up as often as possible with a bonus or similar windfall, you can rev up your retirement savings incredibly!
Case study: How a yearly top-up affects your retirement savings
Let’s say Tumiso (30) is earning R30 000 monthly and contributes R4 500 per month to a retirement annuity. We assume the money grows at 12% per year before fees. We also assume his salary increases by 5% per year, and he will increase his retirement contributions by the same rate.
Now we look over his shoulder over the next 25 years:
- Scenario 1: He sticks to his plan and adds no further contributions.
- Scenario 2: On top of his monthly investments, he invests a 13th cheque every year.
If we round the retirement value off to the nearest million, this will be the picture:
- Scenario 1: His retirement annuity will grow to R21 million.
- Scenario 2: His retirement annuity + 13th cheque will grow to R32 million (or 53% more).
This means if you top up your retirement savings with a 13th cheque every year, your retirement money will be more than 50% fatter. That’s incredible. By adding the 13th cheque every year Tumiso also gets an additional tax rebate of nearly R8 000. (And if you reinvest your yearly tax rebate on top of that, instead of spending it, your retirement money will be an incredible 77% more.)
A single lump sum investment can balloon like this
If you don’t want to invest monthly towards your retirement, but have a windfall, time will also multiply your savings.
If you invest R50 000 once-off and we assume the money will grow at 12% per year before fees: 
It means over 30 years, a mere R50 000 can balloon to R1,5 million, or thirty times more than you invested.