Retirement Annuity and Savings

Went_For_Beer

Went_For_Beer

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Hi Guys

Well I woke up a bit too late and just realized that i have nothing, nada zip for when I get old.

I am 29 and I need to start making a plan.

Any advise on what all I must sign up for.

Hope you guys can help
 
Thats quite peculiar, what line of work are you in? I'd have thought they'd offer this to you on signup if they have their own broker.
In any case, have a look at the offering from Coronation and Allan Gray.
I want to say take one through your work if you can, makes handling the tax a bit easier imo. But do research each and make sure to consider the total costs involved in each before deciding!
 
Space_Kriek said:
Hi Guys

Well I woke up a bit too late and just realized that i have nothing, nada zip for when I get old.

I am 29 and I need to start making a plan.

Any advise on what all I must sign up for.

Hope you guys can help
Click to expand...

Do you have medical aid, life assurance, income protectors or anything else? If not, I would advise you approach a broker that specifically does policies for the big boys (Liberty, Momentum, Discovery, etc). The reason I say this is that you can get discounts and better premiums id you start pooling policies together.

For example, I am with Momentum. I have medical aid, multiple RA's, life assurance, disablilty, income protector and short term insurance with them. I also have two other policies with Liberty, but that's beside the point. Ultimately though, what is happening is that on my life assurance and disability, I get monthly premium discount because I have RA's and medical aid with them as well. Also, on my short term insurance, I get discount due to my Multiply (Vitality for Discovery) and monthly "cash backs" into my medical aid. And there are a couple more discounts I can't remember off hand. If I think back when I last looked at all of this, I think my total premium discounts were in the region of 40%, and I was getting something like R450 into my medical aid savings each month.

They saying "Don't put all your eggs in one basket" doesn't always have to be true.
 
Space_Kriek said:
Nope i just spoke to them. Best is they can get their broker to call me
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At the minimum you should save 15% of your gross salary (that's before tax or anything else comes off) into retirement savings, preferably 20%. You will be able to get some money back when submitting your tax return.

Best way is through a RA since you have no work retirement fund.

Can only access the money at earliest 55 or if you emigrate.

Beyond the active fund managers like Allan Gray mentioned, you can also use the indexed fund RAs from 10x (they just have that fund) or Syngias Skeleton Balanced 70
Fund, which have much lower costs for the underlying unit trust in the RA than the active managers.
 
My company doesn't have a pension fund, I just contribute to an RA with Allan Gray every month.
Even if you one day work at a company with a pension fund, keep contributing to your RA :)
 
It's a little late, but definitely not too late. In fact you could still be financially independent at 46 years old if you could save 50% of your pay... Oh and by saving I mean doing what supersunbird suggests.

Rich_Years1.jpg
 
patrick said:
It's a little late, but definitely not too late. In fact you could still be financially independent at 46 years old if you could save 50% of your pay... Oh and by saving I mean doing what supersunbird suggests.

View attachment 202970
Click to expand...

Now what is defined under rich? ;)

Self sustaining income at current net income? (aka no need to work)
 
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