For most of us, twenty or thirty years seems way too far off to plan for, however, planning for retirement is essential and there are many good, value for money savings plans which can help with the planning for a comfortable and financially secure retirement. A retirement annuity is one of the most effective savings vehicles, which will provide the investor with the flexibility to begin saving a small amount. It is not important the amount that is saved, but what is important is saving from an early age.
A thirty year old person will spend little time pondering the cost of food, accommodation and medical care costs in 2040, however, imagine if the same thirty year old, took an amount as small as R100 and invested it in an RA or Retirement Annuity. When adding interest and increases to the initial small investment, the returns that are yielded in thirty years time, will prove to be a worthwhile investment.
Many companies have pension or provident schemes in place, which require all employees to contribute a percentage of their income into the fund, however, in most cases, this is not enough and will not be adequate to sustain the retired worker. It would be a wise move for the individual to obtain further information above private retirement funding and there are a number of easy to understand online resources which will give the individual the chance to determine exactly the amount that is needed to fund their retirement.
Many people feel that living day to day, raising a family and putting food on the table is more than enough to deal with, and are not able to commit themselves to retirement planning. However, if we do not take responsibility for our own retirement funding , who will?
Although, most average-earners are cash-strapped, there are those who have the extra R100 or R200 and no matter how small the initial investment is, a little can go a long way. Be sure to make use of the online retirement calculators on www.oldmutual.co.za. Sourcing a financial advisor from a reputable financial organization such as Liberty Life or Old Mutual, is also a wise move as they have access to all the resources which will allow them to project cost increases and how individuals can start saving towards a nest egg. Life is unpredictable, but when careful budgeting and planning is put in place, we can all begin today to a plan for a financially secure tomorrow.