Kelin Pottier, Product Development Specialist at 10X Investments, was disappointed that contribution limits on tax-free savings accounts (TFSAs) were not adjusted, saying the value of these important incentives for saving was being eroded by inflation.
"TFSAs, which are a great mechanism to encourage savings, were introduced in March 2015 with an annual contribution cap of R30,000 and a life-time limit of R500,000. The annual contribution cap has been raised twice since, but the lifetime limit is still only R500,000. For people entering the workforce and starting out with a TFSA today, the R500,000 limit is equivalent to only R357,000 on 1 March 2015," Pottier said.
Learn more about the 10X Tax-Free Savings Account here.
