The Golden Years: Retirement Planning You Can Bank On
The Golden Years: Retirement Planning You Can Bank On
We all look forward to kicking back during retirement and enjoying the fruit of our labour in our golden years. We often conjure up scenes of sitting on the porch with our feet up, watching grandchildren or pets play in the yard without a worry in the world. Perhaps it involves finally travelling or taking up those hobbies you never had time for previously.
However, the stark statistical reality tends to burst these dreams for most South Africans. According to research, mounting financial pressure prevents many from saving enough for their golden years. National Treasury statistics often suggest that only 6% of the population is on track to retire comfortably. This is a complex situation that requires education, guidance, and professional advice concerning how and when to save, especially if you are currently finding it difficult to meet monthly expenses.
KEY STEPS TO SECURE YOUR RETIREMENT
Track your income and expenses
We often spend more than we have simply because we do not keep a record of our expenditure versus our income. Budgeting is an essential life-long discipline. Firstly, it helps you stay within your financial means. Secondly, it may reveal areas where spending can be adjusted to make room for consistent savings. That daily coffee or a maxed-out clothing account might be the very thing standing between you and a secure individual pension plan.
Consistent saving to beat inflation
Monthly savings should become a habit as soon as possible. Decide on an amount you are able to save and have it debited from your account as soon as you are paid. Hiding cash under a mattress is not a viable strategy for retirement savings. To benefit from compound interest and growth, you need to invest in a retirement annuity. The best time to start saving for your retirement is when you land your first permanent job; the second-best time is today. With the right retirement investment plan, you could potentially double your investment over a period of 20 years.
Review your investment and goals
It is important to review your retirement funds regularly. Life changes, such as children finishing university or paying off a bond, provide excellent opportunities to redirect extra monthly income into your retirement portfolio. Actuarial models suggest a good rule of thumb is that 12 times your annual salary is likely to buy you a financially comfortable retirement. However, even if you only have a small amount to start with, do not let that discourage you. Once your financial position improves, you can increase your contributions to your retirement investment.
Speak to an expert
A reputable and registered Financial Services Provider, such as Springpoint Finance (FSP No. 43870), can help you assess your goals and ensure your money is placed in a product best suited to your needs. We partner with reputable providers such as Old Mutual, Brightrock, and Momentum to offer you the best in wealth management services.
We also provide a tool to help you check and compare your existing policies. Simply visit www.verifi.co.za, complete the form, and we will send you a free comprehensive report on your existing policies and investments.
Contact Springpoint Finance
Should you require further assistance with updating your policies or if you would like to explore additional options, our friendly and highly qualified financial advisors are ready to assist.
DISCLAIMER The information contained in this article is of a general nature and intended as a guide only. It is neither to be construed as financial advice nor to be regarded as a definitive analysis of any financial, legal, or other issue. We recommend you consult a financial planner to take your particular investment objectives, financial situation, and individual needs into account.
