Are you in the 6% club?
Last updated on 12th December, 2018 at 09:12 am
Only 6% of South Africans are financially independent at retirement. Take a moment to absorb that. That means that we are some of the worst savers in the world – and the impact this can have on you is scary.
After all, what happens to you if you can’t afford to retire? Do you have a plan in place to cover your living expenses after you’ve stopped working? In short: are you in the 6% club – or do you need to take a fresh look at your finances, stat?
Truth is, saving isn’t fun or easy. It takes short-term sacrifices to save for the long-term. It takes careful budgeting and planning, and it requires you to be intentional with your cash. But here’s the good news: just small adjustments to your habits can yield huge results in the long-term. Thanks to the power of compound interest – how your money earns interest and grows massively over time, without you having to anything except for save – the sooner you start saving, the more you have in your pot for when you retire.
Ask yourself these questions:
- When do you plan to retire?
- What do you expect your monthly costs to be when you retire? For example medical bills, groceries, petrol and rent.
- How are you going to fund these costs? Savings should be paying you a monthly salary at this point – but do you have those savings in place, now?
And remember: your children are not an adequate retirement plan. Neither is a company-provided provident fund, which often doesn’t provide you with the level of income you need to live month to month. Additional savings, ideally like a Retirement Annuity (RA), are vital – and you need to start contributing to these now.
That’s why we’re here to help make saving easier – and to reward you for it
Ready to secure your financial future? Speak to a qualified financial planner to find the best options to suit you – request a meeting here. And remember: as a Sanlam Reality member, you can get up to 100% off primary asset management fees with Sanlam Investment’s flagship funds. Find out more, here.
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