As the tax year draws to a close, many South Africans face financial pressures that make saving and investing a challenge. JustMoney’s Money & Me survey shows that only 9% of South Africans save 10% or more of their income, while a significant proportion (41%) do not have a retirement annuity (RA).

Alarmingly, of those who do have retirement savings, more than half have withdrawn money in the past year, reducing their long-term financial security.

“The good news is that there are practical, legal steps you can take before 28 February to reduce your tax, strengthen your savings, and boost your retirement plan,” says Sarah Nicholson, head of customer experience at JustMoney.

“Even if you haven’t saved as much as you would have liked this year, small, strategic adjustments made now can deliver long-term benefits for your financial wellbeing and retirement.”

Top up your RA

South African tax law allows you to deduct retirement fund contributions of up to 27.5% of your taxable income, capped at R350,000 per tax year.

This means you can reduce your tax bill while adding more to your retirement savings. Any unused deduction is carried forward to future tax years, meaning you don’t lose the benefit – it can still reduce your tax over time.

Keep more, pay less

While topping up your RA is a smart step, there are several more actions you can take before month-end to maximise your finances.

·        Track tax-deductible expenses. These include medical expenses such as payments for doctors, specialists, prescribed medication, and medical aid contributions; and work-related travel costs, such as mileage or transport expenses incurred in the course of your job.

  • Check your investment income. Review any interest, dividends, or rental income you’ve earned, as these may be taxable. Be sure to make full use of your Tax-Free Savings Account (TFSA) – you can contribute up to R36,000 per tax year, and all returns in the account are tax-free.
  • Verify payroll and contributions. Ensure your RA, UIF, and other deductions are accurately recorded on your payslip and tax filing.
  • Plan for capital gains. If you hold investments or assets, consider the timing of sales or donations to reduce the tax payable on any profits.
  • Manage extra income. If you earn additional income from a side hustle – something 36% of South Africans do, according to Money & Me – this income may be taxable. Keep records and declare it to SARS, to avoid penalties.

·        Support a good cause. Public Benefit Organisations (PBOs) are registered non-profits recognised by SARS for activities that benefit the public, such as education and community development. Donations to approved PBOs are tax-deductible up to a limit of 10% of your taxable income. Ensure the organisation is registered with SARS and that you receive an official, signed, Section 18A certificate.

  • Keep orderly records. Organise receipts, statements, and other supporting documents to simplify filing.

·        Seek professional advice. A tax consultant can help ensure you don’t miss opportunities by maximising deductions and planning ahead for the next tax year.

“Taking a few proactive steps before 28 February will help you gain better control of your finances and maximise both your tax benefits and savings,” says Nicholson. “This will help you keep more of your money, avoid surprises, and set yourself up for a stronger 2027 financial year.”

JustMoney is a trusted voice within the personal finance sector, helping South Africans make good money choices. The JustMoney platform offers personalised insights, numerous articles, and a range of financial solutions and tools, including a free credit score check. Register here.