Africa set to awaken the roar of the dragon

Get Real

Being disciplined enough to save for something as far-off or ‘alien’ as retirement is no easy feat. But the reality hits home when you think about what you might still be paying for when you’re no longer drawing a salary. Life doesn’t stop when you retire—you still have all your day-to-day expenses to pay for… You don’t want to be stressing about groceries in your golden years.

Think Big

Beyond factoring in your basics from month-to-month, think of the luxuries you’d like to afford—whether that’s travelling the world or being able to treat your whole family to dinner in a home you finally don’t owe a cent on. Everyone’s hopes and dreams are different, but you need to acknowledge what ultimately matters to you, and start saving to make it a reality.

How much do you need to save?

For a rough idea of how much you ought to save every month, you can work with between 10% and 15% of the first salary you earned. But only a professional financial planner can help you get a clear idea of exactly what you’ll need to start putting away, based on how much you can afford and what you want to retire on.

A financial planner can also make sure you get the most out of your retirement plans by optimising what you save every month to boost your overall returns. The key is to start saving as soon as you can, and to be consistent in whatever you decide to save every month

Consider all your options

If you don’t already have a company pension or provident fund, you can always take out a retirement annuity (RA) instead. An RA is flexible, affordable, and designed to make sure you don’t pay a boat-load in taxes when your investment finally matures. You can also supplement your pension or provident fund with an RA.

There are many other savings and investment options you can take up or add to your retirement savings. Some of them, like unit trusts, give you a chance to earn higher returns on your interest via the stock market, while others can earn you tax-free interest on your investments.

Again, if you’re ever in doubt about which option suits you best, speak to a financial planner before making any decisions …And while we’re on the subject of retirement, you might also want to start thinking about life cover (and even a funeral plan).

---

Next Step

To find out what your options are for retirement, go to our financial planning page, or visit our Community blog to chat to Standard Bank customers and consultants for advice.