TIP

CityPress - - Tenders -

The key to re­tir­ing com­fort­ably does not solely de­pend on how early you’ve started sav­ing; it is also deter­mined by whether your con­tri­bu­tions and re­turn ob­jec­tives are in line with in­fla­tion.

To beat in­fla­tion, Preenay Sathu, chan­nel head for FNB Fi­nan­cial Ad­vi­sory, high­lights the im­por­tance of not re­ly­ing solely on your em­ployer pen­sion scheme.

“In­stead of solely re­ly­ing on your em­ployer pen­sion scheme, sup­ple­ment it with another re­tire­ment ve­hi­cle such as a re­tire­ment an­nu­ity. Another op­tion is to di­ver­sify your in­vest­ments by en­sur­ing that your port­fo­lio has fair weight­ing to dif­fer­ent as­set classes such as shares – while they may be volatile in the short term, shares are likely to pro­duce higher-than-in­fla­tion growth in the long term,” she says.

Other as­set classes to con­sider as part of the to­tal in­vest­ment port­fo­lio are cash, bonds, prop­erty and com­modi­ties, which can be a com­bi­na­tion of lo­cal and off­shore. If you are for­tu­nate enough to get a bonus from your em­ployer, di­rect a por­tion of it to­wards your re­tire­ment sav­ings on an an­nual ba­sis.

“Like any other in­vest­ment, it’s im­por­tant to pay close at­ten­tion to your re­tire­ment sav­ings to avoid sur­prises when your work­ing life comes to an end,” con­cludes Sathu.

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