Need to know
- Boost savings with lump sums: Adding extra contributions from bonuses, windfalls, or a 13th cheque can significantly accelerate your retirement growth.
- Maximise tax benefits: Extra contributions to a retirement annuity reduce taxable income and can result in bigger tax refunds.
- Harness compound interest: Investing more earlier multiplies returns overtime, helping you save less later while securing a more comfortable retirement.
Saving for retirement monthly, is an excellent way to grow your retirement money. But, adding an extra once-off amount can give your retirement savings a significant boost and help you reach your financial goals much faster!
We’ll show you how your retirement savings will benefit from the extra money you have, added as a lump sum on top of your regular savings contributions. You can do this once or many times a year. Many people prefer to do it before the end of the tax year in February, in time for a tax refund equal to the tax rate they usually pay. The top limit of how much you can invest kicks in at a very high level. The product rules determine the minimum.
How your retirement savings benefit from an extra once-off investment
How your retirement money multiplies
Not a lot of us get hold of R50 000 every day, but the principle stays the same. This is how well it will do for you over 10, 20 or 30 years. (We assume that the money will grow at 12% per year and round off the numbers.)
* Real value is a way to see how your saved money would look today, even if we look at it years from now.
What? My R50 000 can balloon to R1,5 million?
Thirty times the original value?
Here’s why
The secret ingredient at work is compound interest – when you not only earn interest on the money you invest, but also start earning interest on that interest. It has a multiplier-effect. In fact, our sums show that if you top up your retirement savings with an extra contribution from your 13th cheque every year, your retirement money will be more than 50% more in the end.
"In a way, government 'sponsors' your investment"
- Pieter Albertyn, Actuary at Momentum Savings
Discover how SARS gives us back something when we invest in our retirement.
Introduce a game changer for your retirement savings. Using a bonus, 13th cheque, or unexpected windfall to top up your retirement savings can help your money grow exponentially over time, increase your chances of a comfortable retirement, and reduce how much you’ll need to save later. When you add a single lump sum investment to your Investo RA from Momentum Savings before the tax year ends in February, you can score big on your retirement savings, and unlock valuable tax benefits that fuel long-term growth.
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