Tax breaks for pension funds

MOST individuals wish to provide themselves with income and capital in their old age when they will have ceased to earn. Our progressive rates of income tax – which increases as income levels rises – make it difficult for most employees to make adequate provision for savings out of taxed earnings.

The Government as an employer, realises the social and economic advantages to the country in providing for future old age and dependents. It set up the Pension Trust Fund and the Armed Forces Fund to provide for the retirement needs of public sector employees. Pensions received by such retirees are generally tax-exempt too.