After working hard for many years, the last thing you have to worry about is having enough money to live by.
Yes, retirement savings come at a cost, but the earlier you start saving the better.
Some costs are clear and others are complicated or hidden, over the span of your working life they will have a material effect on your retirement. Costs multiply over time, resulting in a significant amount over the term of your investment.
Various factors will ultimately decide what you earn at retirement. These include how long you have been saving for, how much you have saved, the returns generated and, of course, how much you have paid in costs.
Hence it is important to get a good retirement package. Understanding costs and getting solid and trustworthy advice on the best retirement investments, will be best for your investment journey. It is advisable to go for a reputable business that has been in the industry for years and has a good financial record. In this way you are guaranteed that they deliver good investment returns. After all you want to be able to live a comfortable retirement and be able to maintain your standard of living.
Preserving your retirement savings between jobs is just as important. It must be over the course of your working life. At the end of the day, you want your retirement plan to be run like a well-oiled machine.
Sophie Mkhwanazi who recently retired had been working for one company for 44 years. By having a retirement fund, she is now able to continuing taking care of her family and provide for their every need like she used to when she was a full time employee.
“I am very fortunate to have had a company that had my best interest at heart and offered me advice when it came to saving money.”
Gerhard van der Bank who is an independent financial advisor working under Craven Financial Solutions said the main thing about retirement is to start saving as soon as possible.
“The sooner you start the better because of the time value of money does not stay the same.”
Gerhard mentioned that different companies have various requirements, premiums and structures. This is because each client has their own goals and income.
“I would advise people to see a financial advisor who will assist them come up with a plan of action on how to reach their goal. But one thing is certain, if you start late, your premiums will be high and reaching your ultimate goal will be difficult.”
The financial advisor encouraged people to save a bit more extra to what they are saving now, which will be fruitful in the long run.
