Weekend Argus (Saturday Edition) - - PERSONALFINANCE -

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.

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