How Budget 2026 benefits disciplined savers

The most important driver of wealth creation is not necessarily the return you earn, but the amount you consistently invest, says Ricardo Teixeira, managing director at BDO Wealth.

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The most important driver of wealth creation is not necessarily the return you earn, but the amount you consistently invest, says Ricardo Teixeira, managing director at BDO Wealth.

He says, “If you're not putting money away and investing it, even strong market returns won't build wealth”

According to Texeira, when people hear about the national Budget, they often think about government spending, tax revenue, and the broader economy. But some of the changes announced in Budget 2026 could have a very practical impact on individuals who are saving and investing for the long term.

While the Budget did not introduce dramatic tax cuts, it did increase the limits on two important savings tools available to South Africans. These changes have quietly created an opportunity for disciplined savers to build more wealth over time, he says.

Financial planner Shaun Chennells at BDO Wealth notes that intention plays a crucial role in building long-term wealth. “Saving needs to be intentional. When investors are disciplined about setting money aside and sticking to a strategy, the long-term results can be meaningful,’ says Chennells.

In other words, the Budget itself does not create wealth, but it can make it easier for people who already have the habit of saving.

Two important changes

Budget 2026 increased the limits on two tax-efficient savings structures. The annual Tax-Free Savings Account contribution limit increased from R36,000 to R46,000, and the maximum tax-deductible contribution to retirement funds increased from R350,000 to R430,000 per year, says Chennells.