RETIREMENT SAVINGS ADVICE

Make sure you understand what provision you need to make for retirement. “South Africans save way too little for retirement, and most discover this far too late,” Jaco Gouws, product actuary at Old Mutual, says. Members of company-sponsored retirement funds are “largely oblivious” as to whether or not their retirement provision is sufficient, Gouws says. People who belong to defined contribution funds are often “badly under-funded”, and those who belong to defined benefit funds don’t fully consider the possibility of belowinflation pension increases. Fully understand what it’s going to cost you to realise your dreams. Fully consider all the risks you face, particularly the risk of your losing your ability to earn an income.

Ask a financial planner to advise you on how much you need to spend to protect your assets and invest to realise your goals.

Use an established financial institution when investing your savings.