The biggest barriers to retirement planning, beside the inevitable, unpredictable and uncontrollable changes in the investment environment, are people’s stubborn belief that they know better, a prevalent culture of immediate gratification and a tendency to procrastinate.
Saving for retirement is not something that should be left for the last minute. In fact, it is not something that should be overlooked at all. Unfortunately, many people do not view saving for retirement a priority.
However, for those who simply battle to save - and are not ignoring their inevitable retirement - there are some beneficial ways to start saving for retirement now. While only one in four South Africans have a Retirement Annuity, this is one of the best and most convenient ways to save for retirement.
There are no full proof methods of ensuring financial independence in retirement. However, to give yourself the best chance, you need to start as early as possible.
One of the easiest ways to save is with an Retirement Annuity (RA). This is a flexible and cost-effective retirement saving option. RA’s typically allow an investor to contribute on a ad-hoc basis - often subject to minimum investment amounts and other criteria - or on a regular basis via a monthly debit order. Such contributions are tax deductable up to a limit, and the investment is sheltered from capital gains tax and dividends tax, thus significantly improving potential returns to the investor.
- Retirement Savings
- Preservation Funds
- Living Annuities (Retirement Income Plan)
- Guaranteed Annuities