Which should you choose; to top up your RA or invest in a tax-free account?

Peter smallerFrom time to time Rosebank Wealth Group is asked to answer Moneyweb readers' questions. Recently Peter Nurcombe-Thorne answered this question:

I am currently 54 years old and contributing to a pension fund and RA. I am also contributing towards a tax-free fund of R33 000 per year. I am however not using the full 27.5% contribution towards the pension/RA funds on my total remuneration as per Sars. My question: Would it be better to first use the tax benefit as allowed by Sars before investing into a tax-free fund? Financially I am not able to contribute the full 27.5% plus the R33 000.

To read his answer click here.