Saving should be an ongoing goal for you and your family. Having a savings mindset will help you live comfortably in your golden retirement years.
Preenay Sathu, Wealth and Investments Product Specialist at FNB says that, “We often leave saving for the latter parts of our life and underestimate the consequences that this has on our retirement. With the current rate of inflation and economic changes, consumers should start saving early rather than later. Retirement savings should be factored as part of your long-term goals which can assure you a lifestyle that is financially safe and secure.”
“There is no timeframe to start saving but the sooner you start the better. Like any other savings plan, saving for retirement should begin in your early working career. Any delays will mean that when you eventually start your retirement journey, you will have to contribute a larger percentage of your monthly income which may not be affordable based on prevailing financial circumstances,” says Sathu.
Starting early will help you in the long-term and ensure that you settle down comfortably during your retirement. When saving for retirement, it is important to manage your expenses and avoid wasteful expenditure. This will further assist in one falling into unnecessary debt traps.
Switching from contract to prepaid, taking advantage of discounts and using rewards such as eBucks for petrol and groceries are some of the ways that can help you reduce your expenses.
“Debt is the last thing you need to worry about when you are in retirement as it can derail you from enjoying a financially comfortable retirement. Draw up a detailed budget plan that highlights all your expenses and savings priorities”, adds Sathu.
An option to consider in your retirement is having an emergency fund, which acts as a great buffer should you need access to money at short notice. This money can be used in the unplanned event of a hospital visit or even repairing your car.
Ongoing review and monitoring needs to be provided on all the different investment and savings products one holds to ensure that you remain on track to achieve your retirement goals. If you are uncertain in terms of where you are in your retirement journey, please contact a professional financial planner to help and guide you accordingly.
“We will all be on different paths and stages of our retirement journey. This means that you will have to be patient, conscious of your goals and invest wisely to ensure a safe and comfortable retirement,” concludes Sathu.