It takes many years and a lot of discipline to ensure financial independence when you retire. Each year you wait can be costly, as your savings need time to grow.

Advances in medical technology have made it possible for you to live a third of your life after retirement. Although your retirement fund is usually the main source of retirement savings, it will probably not provide you with enough money to live on after you retire. Therefore, it is imperative that you start planning for your retirement when you are still young; in fact, you should start when you receive your very first salary.

Ageing is a fact; how you experience it is your choice

Although retirement may be a long way off, you will do well to keep the following in mind:

    • Keep committed to a happy retirement by saving something every month and increase this whenever you can.
    • Consider the tax benefit you can get from retirement annuities, for example.
    • Market movements are part of the game; they move up and down. Don’t be swayed by your emotions when they move down. Stick to your investment objective and try to beat inflation.
    • Choose underlying funds in line with your investment objectives and your life stage. Try to stick to your fund choices and don’t change too often.
    • To make sure that you have a retirement plan that will help you achieve your goals, you may need to speak to an accredited financial adviser. He/she will be able to assess your needs and establish what you need to do today to reach your goals.

Research shows that a fulfilling retirement is impossible without concerted planning. Making a few sacrifices today could mean that fewer sacrifices will need to be made when you retire. Don’t put off saving until tomorrow. Start today to plan for your future. With proper preparation and forethought, your retirement it will be a time of enjoyment and self-fulfilment.

 

Sources
www.moneyover55.about.com
www.oldmutual.co.za
www.sanlam.co.za