April 13, 2021
Most governments have set up schemes for the assistance of the senior citizens, generally of 60 years of age and above, belonging to a family living below the poverty line or as part of the government’s social security benefits to qualitied retirees and disabled people. However, oftentimes, other priorities of the government such as education, health care and the creation of employment, amongst many others, make it impossible for most governments to provide an adequate income for the senior citizens. Governments do their best to provide for the aged with the limited resources at their disposal, but in the end the individual must, as far as possible, be encouraged to make his or her own arrangements for retirement.
Governments are continuously consulting with pension experts and members of the public on how to ensure the pensions system is future-proof and how to encourage pension saving. As an example, the government of Lesotho has introduced tax savings on contributions and tax concessions at retirement. These are incentives that should not be ignored. The discussion below explains some of the tax advantages of retirement funds that are available in Lesotho.