Retirement planning

Decide today, where you'd like to be tomorrow.

No two people are alike. But there are certain things we all have in common - and one of those is that when we retire, we will want to change the way we live and the way we earn our pension.

Gone are the days when you can simply retire and do nothing. Some people choose to travel... some embark on new business ventures; others simply try to maintain a comfortable lifestyle as the time rolls by.

However we choose to spend it, the answer to a comfortable retirement is having enough pension money! And having money at retirement, means starting to plan &save now!

Every one of us needs to have a pension plan or retirement annuity.

And the time to start putting that plan into action is now. If you have thought about it even once, it means it is time.


Everyone dreams of early retirement, unfortunately, for many people, early retirement is a dream that will never be realised. It is not because they are in a job that won't allow early retirement or because they love their work so much that they can't bear to leave it.

It is simply because they spent their time dreaming about early retirement rather than planning for it!

Did you know;

• Around 94% of South Africans DO NOT enjoy a financially care - free retirement.
• You need around 70% of your final salary as a MINIMUM income.
• You need a lump sum of around 10 TIMES your highest annual salary at retirement.
• After 40 years with the same company, you could retire on 60% of your final salary - a 40% DROP IN INCOME!
• INFLATION in retirement is your greatest threat.
• You could live more than 30 years in retirement, with NO SALARY!

Will you have enough money to live until the age of 90?


What are the implications of delaying to save for retirement?

Start Age 25 35 45
Percentage of salary you need to save to retire with 90% of your income 15% 25% 47%

Looking at this chart, shows that for every 10 years that you delay to save for retirement, you need to almost double the amount you need to save. Managing money during retirement is very different to managing money before retirement.

A comfortable retirement sadly eludes most South Africans. Statistics show that only nine out of every 100 South Africans retire at age 65 You should start planning for your retirement when you receive your first pay cheque. Planning for your retirement should be seen as an on-going process, not a once-off event.

To enjoy a comfortable retirement, you should have more than 10 times your highest annual salary at retirement

Remember, if you do not save/plan for your retirement, no one else will do it for you.

More than 60% of those aged 50 or younger picture themselves retiring in luxury. Yet, the financial situation of those who are already retired doesn't live up to the dream - only 20% of retired South Africans are able to live the dream life they want to in retirement.

Rather than trying to find additional funding, the easiest route may be to trim back on your lifestyle expenditures. By moving to a smaller house, scaling back travel plans and sticking to reasonable budget, you may be able to leave your job a little earlier - a very tempting prospect for those without significant material needs.


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