Why save for Retirement? …What is in it for me?

The choices we make today, will determine our lifestyle after retirement, so make sure that every decision is a good one. Make sure that every decision counts.

Most people think that their company pension fund will provide them with sufficient income at retirement- this, unfortunately may not be the case and by the time that they discover this, it is usually too late to do something about it.

The calculation of how much retirement savings you need is called a replacement ration, as the income from your savings need to replace your monthly salary when you are no longer working.

There is no one fits all solution, but most experts agree that if you want to retire comfortably, you will need retirement savings that will give you an income per month of about 75% of your final monthly salary.

Research has indicated that the average replacement ratio of South Africans is currently 28%

Some of the main reasons for this is that people do not save enough of their income on a monthly basis and withdraw their retirement savings when they change jobs.

If you would like to calculate your retirement you can access the retirement calculator

Every fortune starts with a rand.

Every success starts with a plan

Why save for Retirement? …What is in it for me?

 

Income tax savings on contributions

Retirement Annuity contributions are tax deductable up to a maximum of 15% on income ( Assuming no pension/provident fund. Ie.all income is non retirement funding)

No Tax on fund build-up

The build-up of the fund is taxed at 0% on interest and rental income and there is no tax on capita gains.

Protection against insolvency

Retirement Annuities are protected against claims from creditors, meaning business risks can be kept separate from personal investments.

Funds remain intact until retirement

Withdrawals can generally only be made from age 55, ensuring that funds cannot be used for any purpose other than providing a retirement income.

Tax savings after retirement

After retirement, you have a lifetime R 300,000 tax free, plus non- deductable contributions can be reduced by any tax free amounts you have not accessed before.

You can contact me direct for a free no obligation consultation

I would also like to offer you a Free E book - The Beginners Guide to Investments
You can download your copy here

You can also Complete a Inquiry form and I wil get back to you.

Magda

mbosman@oldmutualpfa.com

Tel: Direct 021 550 9357/ 021 550 9300
Cell: 0761304130
Fax: 0866361925
Skype: magdabosman1

http://mbosman.findanadvisor.co.za/