Activity 19 i. List TWO benefits of Retirement Annuities ii. Sam is retiring in a year's time and is trying to calculate the lump sum payout that he can receive from his RA. His average tax rate is \( 40 \% \) and the total investment is R850 000. How much will his lump sum payout be after tax?
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- **Tax Benefits**: Contributions to retirement annuities are often tax-deductible, reducing taxable income. - **Long-term Savings**: They provide a disciplined way to save for retirement, ensuring financial security in later years. Show more…
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