Most employed South Africans spend around 40 years working every day to earn an essential monthly income. This monthly income helps you to pay for essential things such as accommodation, food, clothes, and education however life doesn't stop when you retire, therefore it's extremely important to not hold off planning for your retirement says FNB Product Specialist Ester Osche.
According to FNB product specialist Ester Osche, Less than 7% of all income earners will have enough money to retire on. This statistic has serious implications for families, meaning that most young professionals young working professionals are using their income to support their children, the parents and themselves.
When is the best time to start saving for retirement? The earlier you start the better— Ester Osche, Product Specialist at FNB
Osche goes on to say that the longer you hold your investments, the better your returns will be. There are many long-term investment solutions, which can help you take advantage of the compounding effect on returns over time so you can plan for that comfortable retirement.
A good rule of thumb is to save up at least 15 times your current annual salary to be able to retire comfortably"— Ester Ochse, Product Specialist at FNB
A retirement annuity is a really efficient way of saving and investing for your retirement. It could be your only solution or it can supplement your existing pension or provident fund says Osche.
Speak to an accredited financial advisor so that you know you are getting the right information for your retirement goals— Ester Ochse, Product Specialist at FNB
Listen to the full interview below