Ten years ago, thousands of South Africans were encouraged to open a Tax‑Free Savings Account (TFSA). This 10‑year milestone offers a rare insight into how time, disciplined behaviour and tax‑free structures work together to build meaningful capital even when contributions start small.

Introduced in 2015 to boost South Africa’s saving culture, TFSAs gave households a simple and accessible way to grow money free from tax. Unlike traditional savings or investment vehicles, TFSAs shelter all returns from interest, dividends and capital gains, allowing every Rand earned to stay invested.

For early adopters who contributed diligently, this uninterrupted compounding has delivered significant outcomes over the past decade.

“The biggest misconception about investing is that you need a large amount to begin with,” says Himal Parbhoo, CEO of Retail Cash Investments at FNB.

“This 10‑year view proves that time is the real currency. A TFSA ensures every cent of growth works for you, free from tax, but disciplined behaviour is what makes the difference. The investors who started early and stayed the course are now seeing the undeniable maths of patience.”

He illustrates a simple example of Tax‑Free compound growth – using a return of 8% per year, compounded monthly:

Over the past decade, TFSAs have become an important part of South Africa’s savings ecosystem. Many consumers, particularly younger savers, have embraced the product’s simplicity and the predictability of automated monthly contributions. This shift reflects a broader trend: a growing awareness that long‑term investing does not require large lump sums, but rather consistent, manageable commitments.

Following the recent National Budget Speech, the annual TFSA contribution limit has increased from R36,000 to R46,000, effective immediately. The lifetime limit remains unchanged at R500,000. This enhancement allows South Africans to accelerate their tax‑free wealth‑building journey by saving an additional R10,000 per year.

From 1 March 2026, the new annual TFSA contribution limit of R46,000 is in effect. This updated limit gives individuals a fresh opportunity to accelerate their tax‑free wealth‑building journey.

By contributing consistently, whether R300, R500 or any manageable amount, more money can benefit from uninterrupted, long‑term, tax‑free compounding.

Setting automated monthly contributions from the start of the tax year can help households establish strong savings habits and maximise the advantages of the increased annual allowance.

Despite the proven benefits, many South Africans are still not fully utilising TFSAs, missing out on one of the most effective ways to build long‑term, tax‑efficient wealth.

“The 10‑year milestone underscores a powerful truth: by starting small, contributing consistently and staying invested, one can materially shape financial outcomes a decade from now. The recent increase to the annual limit makes this already powerful tool even more attractive for building long-term wealth.”

For more information on Tax-Free savings, visit SARS’ website.

A new study by Stellenbosch researcher, Dr Rebecca Selkirk, has raised questions about the value of holding learners back in Grades 10 and 11 ahead of matric exams.

Her research suggests that high repetition rates may not be the key to stronger matric results, and that alternative support strategies could be more effective.

Repetition Rates Before the Pandemic

Pre-pandemic, about 31% of Grade 10 learners and 24% of Grade 11 learners repeated their year in the Western Cape.

“We spend a lot of money on retaining learners in Grades 10 and 11, where repetition’s effectiveness is unclear, and the associated dropout risk is highest,” Selkirk said.

Despite these high numbers, policy and research attention have been limited.

The Pandemic Changed the Picture

Selkirk’s study found a positive link between Grade 11 repetition and matric pass rates in pre-pandemic years. Schools may have benefited by either “gatekeeping” access to matric or helping learners catch up.

However:

• When repetition rates dropped sharply at the end of 2020—from 12% to 6%—the link weakened significantly.
• Matric results did not collapse as expected, and in some cases performed better than predicted, particularly in less-resourced schools.

“This suggests that holding learners back may not be the main factor driving stronger matric results,” Selkirk said.

“High repetition rates may not be justified, and alternatives could be equally or more beneficial to struggling learners.”

Why Repetition May Not Be the Answer

Lower repetition can reduce class sizes.

Avoiding unnecessary repetition may prevent disengagement and negative psychosocial effects.

Pandemic support programmes may have compensated for learning losses more effectively than repetition.

Selkirk also cautions that an overemphasis on matric pass rates can lead schools to make short-term decisions:

“Focusing too much on matric may encourage high repetition, easier subject choices, and concentrating resources only on matric learners—practices that could be harmful to students and the education system.”

Policy Implications

High repetition rates are expensive and carry a high dropout risk.

Alternatives such as targeted academic support and smaller classes could improve outcomes without the costs of repeating learners.

Policymakers are urged to rethink the reliance on repetition and focus on long-term learner support rather than short-term matric statistics.

“There is enough evidence to suggest that high Grade 10 and 11 repetition rates may not be justified,” Selkirk said.

“Reducing reliance on repetition could free up resources to improve the wider education system.”

The research suggests that South African schools may be overusing repetition before matric, and smarter, evidence-based interventions could help struggling learners more effectively.