Keep control over your life by planning properly for your retirement
Ideally, retirement is a long term investment for the day you stop working; something you have put money into from the day you started working.
Realistically, however, when it comes to ways to invest money, retirement planning is not top of the list for many South Africans.
A first-of-its-kind report by 10X Investments, the South African Retirement Reality Report 2018, reveals that 62% of people are not confident they will be able to draw an income when they retire. And, of the more than a million people interviewed, 41% have made no provision for retirement whatsoever.
The crux of properly planning for the day you retire is that it gives you control over your future. Neglect to recognise that your retirement is one of the wisest ways to invest money and you will be faced with the complete opposite scenario … no control over your future.
This is a scary place to be.
If you have found yourself in a catch-up panic about retirement, avoid ending up with little to no money when you stop working by taking these 3 critical first steps:
- If you already have a retirement annuity, make sure you understand the policy. Not everyone is financially literate but when it comes to something this important take the time to get to grips with what its immediate benefits are for you and what it is going to deliver 20, 30 or 40 years down the line. One critical question to ask is whether this is a tax-free investment.
- Whichever retirement fund you have and are contributing to, put something extra in – every month if you can!
- Get the right financial advice. You can start investing in your future today with something as simple and easy as a notice deposit account. African Bank’s product offers market-leading rates and you can choose to access your money with seven, 32 or 90 days’ notice. When you decide to start saving as an investment for your future, be sure to explain to the bank your plan is aimed at growing your money for retirement.
You would think the prospect of not having an income one day when you are older is terrifying enough that nobody would go into retirement unprepared.
But, thousands of people do.
So, why are people not retirement planning?
Here are 6 of the most common reasons we have heard:
- I don’t know where to start planning for my retirement.
- I don’t have enough money to put into a fund.
- I am useless with money; my finances are a total mess.
- I’m sure I have been contributing to a policy for years.
- I’m way too young to be thinking about retiring.
- It’s too late now.
Do any of these scenarios sound familiar to you?
If so, the good news is that you have time to change your future by starting to invest money today, no matter how small the amount.
Retirement is about enjoying life and having the means to do the things you have always wanted to, with your partner or family. There is nothing pleasant about worry and stress over finances.
With the right investment tools, you can take control of your future from the day you clear your desk out and wish the working world goodbye.