Saving up for Retirement Part 2

By admin
26 August 2013

If you don’t plan for your old age, you’ll become a burden

Use a preservation fund

If you should change jobs, move your pension or provident funds into a preservation fund. It may be tempting to use your pension or provident fund when you’ve resigned or been retrenched, but you should avoid doing this.

Ensure your retirement fund is inflation protected

When buying retirement products, people make the mistake of being fooled by what the amount soundslike now. They need to know what it will be worth when they retire.

Don’t rely on government or family to support you

If you consider the cost of food, clothing and necessities, you’ll realise that it’s not going to get you very far. So what will you do – live with your children? Let’s be honest, you don’t want to have to depend on your children to support you in your old age. Think of how much more freedomand independence you’d have if you were financially secure after retirement, and didn’t have to rely on family members for support.