Saving for Retirement: Tips for all ages
Retirement Planning is a lifelong commitment
Fact: Out of every 10 South Africans who are currently 25 years old, ONLY 1 will enjoy financial independence at age 65!
At different stages of your life, you will be taking different financial responsibilities and setting new goals. Regardless of how old you are, it is important to always view your finances through a long-term lens. Budgeting for a big purchase, or a family holiday is necessary, but do not let the short-term expenses cause you to forget the bigger picture. For many people, retirement is a long time away, but starting a Savings Plan will provide you with greater financial security in the future.
Investing at an early age will allow you to retire comfortably. Starting as soon as you have graduated or started your first job, think seriously about how you can budget or pay off any debt you might have such as student loans etc. Structure your pay cheque to free income that you can put away towards your retirement. Each rand you save has a chance to grow larger over time. To get you started contact one of our Financial Planners who will assist you to identify the retirement plan that is best for you.
Investing in your 30’s
By now, your career is starting to take shape and you may have purchased your first house or started a family. Being more established means having additional resources and greater financial responsibilities. Now is the time to think seriously about your long term financial plan. With a growing family, consider how to keep contributing and increasing, your retirement savings account as well as setting up a savings product for your children’s future education. Doing these things now can keep you from dipping into your retirement savings further down the road.
Investing in your 40’s and 50’s
When you enter this time of your life, retirement suddenly feels closer. Although it is still some way off, the horizon is looming. At this point of your life you should have a strong hold of your day-to-day finances and expenses. With this in mind it is time for you to strengthen your retirement savings. Rather than focusing on a BIG nest egg, start to think of how much retirement income you will need. You know how much money you currently need to cover your day-to-day costs, so think about how you should be saving so as to continue covering these costs when you NO LONGER have a pay cheque. You need to get rid of debt!
Investing in your 60’s
Now, after years of planning and saving, you are hopefully able to reap the rewards of an enjoyable retirement. However, just because you are leaving your job does not mean you can give up your retirement plan. In fact, it is more important than ever to keep on top of things as statistics show that you will be living longer so your money needs to last for a long time.
It's important to speak to a financial adviser from an early age to assist you plan for the BEST chapter of your life: A LONG AND HAPPY RETIREMENT!