A good start but TFSAs would benefit from some fine-tuning
Tax-free savings accounts were never intended to be a panacea. However, they were an explicit effort to help transform SA’s dismal savings
Introduced at a time characterised by high unemployment, a volatile economy and a population under severe financial constraints, tax-free savings accounts (TFSAs) were never intended to be a panacea. However, they were an explicit effort by National Treasury to help transform South Africa’s dismal savings culture into a more positive one. According to research by Intellidex (publishers of this booklet), a little over 260,000 accounts were opened in the first year since their launch in March 2015, holding R2,6bn in assets. In the view of industry participants, that’s not a bad start, but there is hope that many more will sign up in future.Punching above their weightThe JSE’s marketing head, Mpho Ledwaba, is optimistic and feels the JSE has punched above its weight with limited resources to promote stockbroker accounts as the ideal TFSA mechanism(see page 4 for details on different types of TFSAs). “With that said, we are still hoping for more, especially considering how tax-free savi...
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