If you were to sit down right now and consider your prospects for retirement, what would they look like?
Or, let’s position it differently: Do you think you will merely be able to survive in old age or do you think you will be comfortable? Many people avoid this question because they either believe they have plenty of time, or they simply are too scared of the answer!
Consider these five steps to a comfortable retirement, and if you follow them you could easily spend your golden years in the way you were meant to.
• Forgo the temptation to spend money on some of those luxury consumer goods such as the latest cars, cellphones and designer clothes, and rather invest that extra money.. Save as much as possible. High debt is keeping people from saving adequately for their retirement because of their ‘living for the moment’ attitude towards life.
• Capitalise on the eighth wonder of the world – compound interest. By starting to save early, your money will have enough time to really benefit from the powerful effects of compound interest. The longer you save, the more you benefit.
• People are living longer and failing to factor this into their retirement planning, which may mean they could find themselves running out of money before they run out of life. Make sure you top up any pension fund shortfall with additional retirement savings. ??
Invest in a retirement annuity that will guarantee you an inflation-beating income for the rest of your life. There is so much information around – be sure to take advice from a professional before making any investment purchase.
If you cannot afford to retire, try to delay your retirement by working longer if you can – you have longer to accumulate more money, and your time spent in retirement will be proportionately shorter, which means you will need less money.
For more information, speak to your Old Mutual financial adviser, or your broker, or call 0860 932 584. or visit www.oldmutual.co.za
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