Are retirees paying more taxes?

The tax hike applies to pensioners who receive more than one income.

Picture: Pixabay.

Laura Du Preez chats to John Maythem about a recent tax increase pensioners have been experiencing across the country.

Du Preez explains that the South African Revenue Service (SARS) arranged for pension providers to deduct a different or higher rate of tax in order to avoid people coming out of the financial year owing tax.

The tax hike applies to pensioners who receive more than one income.

If you are receiving more than one pension or you are receiving an income from employment, you may have too little tax deducted.

Laura Du Preez, author and financial journalist

The author adds that money people do not know how much tax they owe and often miss or ignore the communications from SARS warning them about it.

For many it has been a shock and there have been some cases where the amount that the pension provider has been asked to deduct has been incorrect.

Laura Du Preez, author and financial journalist

Listen to the audio below for more:

The Smart About Money Editor advises pensioners to seek counsel from their tax advisor or someone they know involved in the financial industry.

This article first appeared on CapeTalk : Are retirees paying more taxes?