A comfortable retirement starts with saving as soon as you can and ends with managing your savings well once you are retired. There are three important parts to preparing for and enjoying a worry-free retirement.
By investing a lump sum or some of your salary each month, you can grow your money over time so that you can retire comfortably. No matter how much you need to or can afford to save, the most important thing is to stay committed to saving.
Calculate how much you need to save for your retirement.
When you retire, you generally need less income than you required before retirement. This is simply because some of your expenses like travelling to work will fall away, and you will also pay less tax after 65 (and even less after 75). Depending on your retirement plans, you would need at least 60% of your final pre-tax salary after retirement.
If you are retrenched or move jobs, you can maintain your retirement plan by moving it into a preservation fund. Resist the temptation to cash in your savings, as it will be very hard to make up for the value you’ll lose.
If you are retiring soon or are already retired, you need to draw a monthly income from your savings to maintain your lifestyle. You also need to manage your retirement savings to ensure it lasts throughout retirement.
A comprehensive retirement annuity from Sanlam Namibia’s SanFuture range of products can fulfill all these needs or a specific requirement you may have, assisting you to maintain your financial independence during your retired years.
Download the Sanlam Individual Life Products