Are you one of those “tomorrow’s another day” people? There’s no need to hang your head in shame; we are all guilty of procrastination.
It isn’t such a big deal if you are putting off something minor or trivial until tomorrow but when you put off major things, you could be setting yourself up for a nasty surprise down the line.
Ideally, you should start saving towards the day you stop working from the first day you start working. We know this is much easier said than done and that, due to the cost of living, saving money, in general, is difficult for many people.
Saving requires discipline and it is possible, regardless of what you earn.
A retirement annuity offers many benefits. The biggest drawcard of a retirement annuity is that it is a disciplined way of saving towards your retirement.
There are also attractive tax benefits associated with this type of savings policy, such as investment returns are not currently subject to Capital Gains Tax, Interest Income Tax or Dividends Tax. Also, the tax is carried forward, so there is no tax on the build-up of the capital, only at retirement, up to a specified limit.
You may be wondering whether you need a financial advisor when considering how to pick the right retirement annuity.
We strongly recommend you appoint a financial advisor to help you. Like Hollard Life, most insurance funds don’t provide financial advice; they are only mandated to supply you with factual or administrative information relating to their investment products and portfolios.
How you pick the right retirement annuity is easier when you understand what you’re investing in.
Here are some guidelines about retirement annuities:
- You can contribute to your investment via lump sum investments or a recurring debit order. You can also invest a once-off contribution at any time, and start, stop (usually only when the existing fund value is above a certain amount) or change a monthly debit order, according to the terms and conditions of your plan.
- Retirement annuities are a lower-risk investment because they must remain Regulation 28 compliant in terms of the Pension Funds Act. This means that they are restricted in the amounts that they may invest in, in particular assets or asset classes. This way retirement monies are not invested irresponsibly.
- It’s important to note the market value of the investment may fluctuate and past performance is not necessarily a guide to the future.
- You can invest other benefits into the product, like a pension or provident fund payout or a benefit received as part of a divorce settlement.
Saving for your retirement must be a priority. It is never too late to start creating a nest egg for the future so that you can stop your working life with a form of security and comfort in hand.
Speak to Hollard today about a retirement annuity. Let us help your dreams come true.
