Your decision to start saving and investing for your retirement is possibly one of the most important you’ll ever make.
One of the main risks retirees face is outliving their retirement savings. Many of us will live for 30 years beyond retirement age, so we expect our retirement savings to ‘work’ for as long as we have worked. The ideal time to start saving for your retirement is with your first pay cheque. A good rule of thumb to allow you to maintain your lifestyle later is to save 17% of your salary starting at age 25. If you start later, you will naturally need to save more or consider retiring later.
A retirement annuity is primarily designed to help you grow your savings money for retirement so that you can draw a regular income during your retirement. It is a long-term savings product that helps you save and invest in a tax-efficient way
How can the Retirement Annuity Option help you?
A retirement annuity helps you grow your savings money for retirement so that you can draw a regular income once you retire. It can supplement your employer’s retirement fund or be your main retirement savings method. It is a long-term savings product that helps you save and invest in a flexible, structured and tax-efficient way. The earlier you start saving and investing, the better.
Is it for you?
• Yes, if you want to enjoy tax-free growth potential and deduct the money you invest from tax.
• Yes, if you want to invest a lump sum or a regular amount.
• Yes, if you don’t need access to the money before age 55.
• You can deduct the amount that you invest from tax, within limits.
• You can get tax-free growth.
• You can get tax allowances when you retire.
• Your money is safe from creditors.
• There could be estate duty benefits.
When is it not for you?
• If retirement annuity rules don’t suit your investment goal, for example one of the rules is that you can only take one-third of your investment value in cash when you retire.
Contact one of our advisors for more information.
Phone: 011 803 9686
Email: vivian@pbabrokers.co.za