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How is the income from my discretionary savings taxed, in retirement, e.g. I invest the discretionar

Posted 18 November 2014

I am about to retire at age 60 years, with two main streams of income, i.e. proceeds from Provident Fund and retirement annuities which I plan on putting in a Living Annuity and discretionary(after tax) saving proceeds. I understand the income from the living annuity will be taxed at PAYE rates. How is the income from my discretionary savings taxed, in retirement, e.g. I invest the discretionary savings in unit trusts and take an annual income from that which I place in my Money Market account to supplement the income from the Living Annuity?

TaxTim TaxTim says:
18 November 2014 at 18:15

The interest will be taxed above the exemption free portion of R23 500 per year and the remainder added to your other income and taxed all together.

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