Financial services group Old Mutual has called on Finance Minister Enoch Godongwana to revise South Africa’s tax-free savings account limits ahead of the upcoming Budget. Currently, individuals may contribute up to R36,000 per year, with a lifetime cap of R500,000. While the annual threshold has been adjusted over time, the lifetime limit has remained unchanged since the accounts were introduced in 2015. At the current annual maximum, disciplined savers can reach the lifetime cap in roughly 14 years, limiting the long-term growth potential of these tax-efficient investment vehicles.
Old Mutual has proposed increasing the annual contribution limit to R40,000 and raising the lifetime cap to at least R600,000 to better reflect inflation and modern retirement needs. The group argues that higher limits would strengthen South Africa’s savings culture and improve long-term financial outcomes for investors. Savers are also reminded that exceeding the prescribed limits results in a 40% penalty tax on excess contributions, and that withdrawals cannot be “reset” — any reinvested funds still count toward the lifetime cap.