The Best Ways to Save For Retirement: 10 Tips Everyone Should Know

It's no secret that we're not the best savers in the world. In the latest reports for 2021 over half of South Africans (49%) acknowledged not having a retirement plan.

According to recent data conducted by South African insurers, only about 6% of people can retire and be financially self-sufficient. It's never too late to start saving for retirement, but you must do so as soon as possible. The sooner you start, the better.

?Given that, thanks to advances in medical technology, most of us will live much longer in retirement, the amount you'll need to save for retirement could be enormous.

?I want to assist you in creating a retirement that you have worked hard for and will enjoy.?

Keep the following in mind, an experienced advisor will be able to assist with every step of the Retirement planning journey:

1.Identifying and defining your retirement objectives.

2.Calculate and evaluate how much money you'll need to meet these objectives.

3.Create a retirement plan that outlines the steps to financial freedom.

4.Improve the growth of your retirement investing account without incurring needless investment risks.

5.By having SARS reimburse a percentage of your retirement contributions, you can use tax allowances to help you save for retirement.

6.Keep track of your progress toward your retirement objectives.

7.Make a monthly budget for your income and expenses.

8.To prevent paying extra taxes, plan your withdrawal from your retirement accounts.

9.?When changing jobs, keep your current pension and provident fund.

10. Perform annual reviews with an experienced advisor to ensure you are getting the best for your risk profile.

?Many retirees underestimate the impact of inflation on their retirement accounts' longevity. As a result, you must ensure that your retirement calculations are done correctly and as accurately as possible. If you run out of money during retirement, it's unlikely that you'll be able to re-enter the workforce.

If you invest for your future, the South African Revenue Service (SARS) offers tax assistance. Make the most of the tax breaks available to lower your tax burden. Consider boosting your contributions to a retirement annuity or a company-sponsored retirement plan. You can also open a Tax-Free Savings Account, which allows you to save up to R36 000 per year (with a lifetime contribution maximum of R500 000) without paying tax on your investment's growth (capital gains), interest, or dividends.

Every person has different goals and can afford different amounts based on their income, budget and risk tolerance. I have clients that have started with as little as R750 per month. The best place to start planning for your retirement is to simply start. Once you have become accustomed to saving for your retirement and investing for retirement, it gets easier, and you will be able to make changes when and as possible to stay on track with the overall end goal...no matter how many life changes you experience.

There needs to be a wholistic approach. It does not help cutting corners and missing the mark. You need to be involved and take action of your life and journey. A proper needs analysis needs to be conducted so that you have the knowledge and power to know what needs to be done to overcome any possible deficit and outcome. You cannot simply thumb suck a number and start saving, you need a tried and tested formula that will ensure the best results.

?Get in touch, give me a call or send me a message to start making plans for a better future.

Email is [email protected] - 066 297 4131 (Call and/or WhatsApp) - You are welcome to send me a private message.

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