Retirement Planning Overview
Retirement is something we all need to plan for. And if we fail to do so, we stand the chance of becoming a statistic, where in South Africa, as little as 5% of the population have sufficient financial means to support themselves after retirement with the same level of living standards as they had before retirement. It is possible to plan for retirement by yourself, but be careful of the mind field of tax issues you will face. The best way is to sit down with a Retirement Planning Specialist, who is trained to analyse all the options, work out the best path forward, and walk that path with you.
There are three areas you may be looking at, so read below and see which of those areas best suits your requirements
You are young, or perhaps have left it a little late, and now need to start putting away money so that when you come close to retirement age you have made sufficient provision for a solid financial future at same standard of living you had before retirement.
It is never too late to start!
But the earlier you do start the more you will experience the true benefits of the value time has on your money. It can take anywhere from 8 to 15 years for an investment to settled in, and thereafter you will enjoy the doubling effect of your planning on all your investments.
Sit down with a Certified Financial Planner, and plan the best route forward. Never be scared to face reality, because if you don’t, you will find out the hard way that you have lost millions for your retirement years because you didn’t start early enough.
If you haven’t started, NOW is the best time to do so. It’s better to know where you stand, and have a professional give you the best choices on how to catch up. There are hundreds of investment choices, and all have a tax benefit or negative you need to discuss.
I Am Retiring Soon
You are coming close to retiring, and need to start planning for that day. Don’t leave it until the last minutes, because sometimes planning three to five years ahead of time can save you hundreds of thousands of rands in taxes when your big day finally arrives.
I’m about to retire, what do I do?
Is this question starting to peek in the back of your mind, or is it right out front already? Don’t fear, sit down with a Certified Financial Planner. Even if your retirement is near, you have more options than you may think.
With careful planning you could invest correctly, save thousands, or hundreds of thousands of rands in taxes using the correct retirement planning options available to you.
You also may need to start looking at downsizing your residence, or perhaps re-locating to another area because of a dream you want to achieve, so the earlier you start planning the easier, and more efficient you will be in implementing the plan. Last minute plans can be costly.
Business Pension Funds
You are an employer who is looking at putting in place a Retirement Plan for your staff.
Are you a small, medium or large size business looking at benefiting from the tax savings on Pension Funds or Provident Funds?
Should you put a fund in place, if you do what are the benefits to you, and your staff? Do you use a Pension Fund, or a Provident Fund? What taxes benefits will you achieve? Do you use the Stand Alone Funds or perhaps an Umbrella Fund?
Don’t stress! All of this can be discussed around your your ideas, and plans, and consider the recommendations which is the most cost effective way forward. I will also be able to discuss adding risk benefits such as Disability and Life Insurance to these funds to ensure your staff and their families are taken care of in all aspects.