If you are one of those people with a 2018 to-do list still a mile long, you’re probably frustrated that you never seem to find the time to do the things you planned to. You can always try again next year if your to-do list is “bucket list” adventures and learning a new language or craft.
But, what about the things you really need to do – like focus on retirement savings? It is never too early to start planning for your retirement - or too late.
The key is commitment and a proper retirement plan which keeps your retirement savings and your future security top of mind.
Especially if you are just starting to save for your golden years, take advantage of a plan which will make your money work for you and save as much as you can.
Your nest egg is, after all, so much more than merely an income when you are no longer working – retirement savings are an investment in your future health, wealth and well-being.
There are several savings and investment options available to consumers in South Africa, designed to meet various savings goals, with no one solution being better than the other – it’s all about you and your plans and what the best option is. You might think Hollard only takes care of your hard-earned goods, family needs on death, or your funeral plans, when in fact we have several solutions to allow you to create wealth and ultimately get you through your Golden years too.
Hollard’s retirement savings solutions cover a wide scope of scenarios and offer easy, affordable means to preserve current retirement savings or to start saving towards your retirement.
For example, if you have recently left your job and received a pension fund pay-out, the Hollard Pension Preservation Plan is a good option:
- You can preserve, save and grow the money you’ve received from your employer’s pension fund – three crucial cornerstones to responsible retirement savings.
- You also have access to a range of Investment Portfolio options and can even withdraw money prior to retirement (limited to one full or partial withdrawal).
- Upon retirement, you get the flexibility of taking up to one-third of the value of your investment in cash and using the balance to purchase an annuity which will earn an income for you while you relax and enjoy your golden years.
Many people are concerned about retirement savings and tax implications. You needn’t worry.
Retirement savings plans offer you a triple tax incentive whammy:
1. Investment returns are not subject to Capital Gains Tax, Interest Income Tax or Dividends Tax during the lifetime of the investment.
2. At Retirement if you invest the proceeds in a Living Annuity, no tax is levied on the transfer. If you choose to withdraw some of the monies, retirement fund tax is generally less than standard income tax
3. In addition if you invest in a Retirement Annuity Fund, your contributions are tax-deductible (up to a certain limit) giving you even more money to invest.
Retirement Funds are regulated by certain guidelines to ensure Investors are not exposed to too much risk during their retirement savings years. Hollard Investments ensures that we only make portfolios available for you to choose from, that are compliant with the regulation, thereby ensuring you are never overexposed to certain asset classes as defined by the regulator.
A comfortable retirement is dependent on the savings choices you make today.
Even if you feel you may have left retirement savings too late, speak to Hollard Investments to get you started, as late is better than never, and gain better peace of mind about the day you have to stop working.
There’s no time like the present. Give us a call today at 0860 202 202, email us at customercare@hollardinvestments.co.za or visit our website.
