Written by Zelda Mulder, CFP®
Have you ever thought about what your retirement will look like? Will you be able to have a comfortable retirement where you can do all the things you never had the time for? Will you be able to keep up your current lifestyle or will you need to scale down? Do you have a plan to help you reach these goals?
We know that planning for retirement can be a daunting task. With the rising cost of living and inflation, many wonder how long they will need to work to be able to retire comfortably and put aside the idea of having retirement dreams. According the 2022 FSCA Financial Sector Outlook Study, 90% of retirees are unable to maintain their standard of living prior to retirement and most South Africans cannot afford to retire.
Planning for retirement is not a tick-box exercise and takes careful consideration. Specific targets and regular reviews are required to evaluate if you are on track to reach your retirement goals.
Simple steps you can take to make retirement feel less daunting:
- Take advantage of the tax savings opportunities available by allowing a professional to conduct a review of your tax return as this can possibly unlock missed opportunities.
- Small changes to your tax strategy could also have an impact on your financial future. For example, contributions toward retirement funds are tax deductible and utilising this saving in your income tax can account for additional funds at retirement.
There is no one size fits all approach as we are individuals, with unique and specific goals. Retirement planning is only one aspect of your financial plan, and your entire financial wellbeing needs to be considered when deciding how you wish to save for retirement. It is worthwhile to consider if your financial decisions support one another.
How a financial adviser can help you reach your retirement goals:
A financial adviser can help you reach your retirement goals by considering the tax implications of your financial plan and investments. An adviser can recommend strategies to maximise your tax savings and help you understand how taxes may impact your retirement planning and expected income at retirement.
A financial adviser can also ensure that you take advantage of any tax credits or deductions that apply to your situation and help you make informed decisions when it comes to withdrawing funds from retirement investments prior to retirement and at retirement. By considering taxes as a factor in your financial plan, a financial advisor can help you reach your retirement goals while minimising the impact of taxes on your savings and income.
You don’t need to do it alone. Speak to one of our financial advisers and unlock the key to your financial wellbeing.
