Most of us think that by the time we are 60 we can sit back, relax and have an endless holiday. However, when you retire you will not have a regular income anymore and therefore have to depend solely on what you have put away in your working years. We have a few tips that you can implement now so that you can retire when you are planning to:
- Write it down: It is all good and well to visualise how much you would need when you retire, however, if you do not have a written plan in place it will be very difficult to stick to your plan and reach your end goal. Take the time to compile a proper plan: from working out how much time you have until you are planning to retire, to working out how many years you are planning to live on the amount you think you need to have by the time you retire.
- Invest in financial literacy: Do you know what the inflation rate is and how it works? Do you know what high-risk and low-risk investments are? Or do you know the difference between a provident fund, retirement annuity and a pension fund? If you do not, then start to educate yourself on these and other financial terms. Once you have more knowledge, you can look for products that will help you to achieve your retirement goals that will stand the test of time (and inflation).
- Make your money hard to reach: When it is hard to take money out of your savings or investment accounts, you will be less tempted to take money out of these accounts. Thus, look for fixed savings accounts and retirement products such as a retirement annuity or a provident fund.
- Stay healthy: You might not be able to afford the best medical aid plan when you retire. In addition, frail care units and retirement homes are expensive, thus make sure that you take care of your health now so that you are not sickly when you retire. Staying physically healthy will also help you to stay mentally healthy so that you can still manage your finances when you are retired.
- Secure your tomorrow with Iemas: Iemas Insurance Brokers, authorised financial service provider (FSP 47563) and wholly owned subsidiary of Iemas Financial Services, offers various financial plans to secure your future. These include savings plans, investment plans and retirement annuities. Visit: https://bit.ly/2uP71K2 or contact us on 0860 102 383.
Adapted from: https://www.lifehack.org/799807/practical-money-skills