Financial security in retirement doesn’t just happen. It takes years of commitment and planning. Fewer than a quarter South Africans have calculated how much they need to save for retirement. The average person spends at least 20 years in retirement so putting money away for retirement is a necessity that should become a habit. This can be done through following these retirement planning tips.
If you haven’t started saving, yesterday was a good time to start! Whether its for retirement or another goal, you need to keep going, retirement planning is an ongoing process. If you haven’t started, start small if you have to and just try put a little bit of money away each month. The sooner you start saving the more time your money has to grow. A good idea would be to compare savings account. Its never to late to start saving, devise a plan, stick to it and set goals.
Retirement planning experts have estimated that you will need at least 70% of your preretirement income to maintain your standard of living when you are no longer able to work. You need to plan ahead for your financial future.
How you save is as important as how much you save. Factors like inflation and your type of investment come into play when retirement planning. You must know how your savings or pension plan is invested. You should lean about your investment options and ask questions. A good idea would be to put your savings in different types of investments. By diversifying this way, you are more likely to reduce risk and improve return.
If you touch your retirement funds you will lose the principal and interest and you may lose tax benefits or have to pay withdrawal penalties.
If you are looking for some free advise about saving for your retirement, please go to https://www.likemoney.co.za/investments/retirement-planning , click apply now and a financial advisor will contact you shortly after to discuss your options.