RETIRING IN 2030...IS IT TOO LATE TO START TO PLAN FOR YOUR GOLDEN YEARS?
The good news is it is never too late to start, but the sooner you begin the better.
Whilst this is not an exact science, experts suggest that you will need to have at least 80% of your current monthly income to maintain your living standards when you retire. A big variable will be inflation as you need to calculate for something that has not happened.
Let’s illustrate this:
If you are 65 and about to retire and your current cost of living is R 50 000.00 per month and you anticipate living for 20 years, you will need R 40 000.00 per month = R 480 000.00 per year = R 9 600 000.00 for your golden years.
Industry suggests that you should save 15% of your gross income (before tax and deductions) from the age of 25 – 65, that is R15.00 for every R100.00. If you start later, the experts suggest you should save R 33.00 in every R100.00.
It is important to take advantage of retirement funding tax-breaks.
There are myriad investment and annuity products out there, and there is not a one-size-fits-all solution for everyone. Consult with your advisor and they can find the right products for you in your current context.
Time in the markets is important, the miracle of compound interest can help you in your older days. It does not matter how much you save, as long as you start saving early, consistently and stay in the market.
To read our article on TAX FREE SAVINGS – WATCH YOUR MONEY GROW AND GROW please click on the link.
For more information contact us.