/ 12 August 2010

The future eventually catches up with you

Pensioners interviewed in the Sanlam BENCHMARK retirement survey were asked what they wish they had done differently.

They all said the same thing — don’t wait until it is too late:

  • Start planning earlier.
  • Start saving earlier.
  • Talk to advisers earlier — don’t wait until when you retire.

There is always a good excuse not to start saving — you need to buy a car to get to work, then you want to get married, then you need to buy a house, then the kids come and you need to pay for their education. It is only when you are about 50 years old that you run out of excuses and you start thinking about retirement, but by then it is way too late.

You need to consider your retirement funding as you do tax. From your first paycheque, 15% goes into a retirement fund and what you have left in your bank account is your true income. Consider whatever you save into your retirement fund as untouchable until retirement.

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