Imagine sleeping in on Monday mornings. Or forgetting what it’s like to sit in rush-hour traffic. And never having to ask for time off ever again. Being retired definitely has a lot of simple pleasures but probably the most enjoyable way to retire is with no financial worries.
Whether your retirement goals include world travel, volunteering your time or finally starting that business you’ve been dreaming about, having sufficient retirement savings makes all the difference. But how much do you really need?
Because everyone’s lifestyle is different, there is no single right answer to this. Fortunately, Old Mutual’s Retirement Calculator (available for free on www.oldmutual.co.za) can give you a good indication of how much you need to save each month to ensure that you will be able to retire comfortably one day.
Once you have a rough idea of how much you need, it’s a good idea to chat with a financial adviser to help you find the best balance of solutions to get your retirement savings on the right track. Some retirement savings options include Retirement Annuities and Tax-Free Savings Plans, both of which can offer significant tax benefits.
Old Mutual Financial Advisers are experts at taking the bigger picture into account and create an overall financial plan that works for your circumstances now, as well as your financial goals in the future. Your adviser will also look at the time frame you’re working with. This may depend on how early or late you are in your career or at what age you’re wanting to retire.
While it’s never too late to start saving for your retirement, the earlier you begin the more your money is able to grow and the smaller your monthly contribution needs to be. If you’re thinking you can wait another few years before you start saving for retirement, try filling in a few different ages on the Retirement Calculator and see the difference just a few years can make.