Retirement calculator

Retirement calculator

How much should you be saving towards your pension every month?

retirement-calculatorA Retirement calculator is not all you need

When you are 20, planning for your pension is not something that is naturally at the top of your mind, but is is something that should be. Studies have shown that those that start saving for their pension from their early twenties, definitely reap the benefit in their later years – that is the beauty of compound interest. There are three options you can consider when choosing a pension option to suit your needs. These are:

  1. The provident fund
  2. The pension fund
  3. The retirement annuity

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Understand your benefits

Not many people are aware of the fact that in order to encourage long-term planning and saving, the South African government encourages the public to save for retirement by allowing us to deduct up to 27.5% of our retirement contributions from our pensionable income. When it comes to planning for your retirement, there are no set rules applicable to retirement savings, but as a thumb-suck one should try and put aside 15% of your earnings from as early an age as possible in order to have sufficient capital to retire. It’s usual to target 75% of your earnings at retirement age as a reasonable goal, and to achieve this it’s vital to start saving as early as possible.

Old Mutual make working out how much you should be saving towards your pension each month easy with their Retirement Calculator. 

READ MORE: HOW TO GET THE MOST OUT OF YOUR INSURANCE 

 

 

Joni van der Merwe

About Joni van der Merwe

Digital editor I’m getting married in 2018 and I think it’s the perfect time to focus on my relationship with not only my fiance but my friends, family and colleagues too. I want to nurture and cherish the people I love by being more understanding and present in their lives.

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