Even if you are years away from retirement, you need to start planning to make sure you are able to take a break in your golden years.
“With South Africans living longer, and costs rising year on year, it’s important that people plan for a retirement that allows them to enjoy a good quality of life without depleting their retirement fund early,” says Barto van der Merwe, MD of Renishaw Property Developments.
He advises:
- As you get closer to retirement, prioritise reducing or even eliminating unsecured debt, such as personal loans and credit cards, and avoid taking on any high-interest borrowing.
- Ensure you have the medical aid and insurance in place to protect you from unexpected emergencies and losses, and take the time to review them once a year to make sure you are getting value for your money.
- As tempting as it might be, do not make early withdrawals from your retirement fund.
- Consider ways to keep earning an income after you retire — it will be good for your pocket and your mental health.
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