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Your financial future

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We all dream of wealth, living independently and being able to live a life without worrying about finances. Our future is in our hands, as
is our financial security.
In our twenties, Retirement Planning is not a priority, yet if we don’t start saving towards it now, it gets harder with each passing year. Studies have shown that a number of South Africans retire with little to nothing. This puts many young people in what is called the “Sandwich Generation”, taking care of your parents whilst taking care of your own family.

I have watched a number of my friends fall into the Sandwich Generation. I have one friend in particular, *Linda. We studied together, started working in the same year, whilst my first income went to a shopping spree, 80% of her income went to her parents.  Today, *Linda is not only taking care of her parents, siblings and their children, but her daughter too. She is constantly worried about her finances, as she has no savings in place. “If something should happen to me Babz, who will educate my daughter, who will take care of her?”, “I hope to never be a burden to my baby.” These are some of the words I have heard come from her lips. Linda understands that she needs to start saving, yet affordability is an issue.

The company she works for provides a Pension Fund, but after some calculations, she found that the amount won’t be sufficient for the lifestyle she hopes to live at Retirement She feels there is very little she can do with her situation. Her story is not just hers, but of many young working people It is not the end of your financial life, you can turn it around.

Planning for Retirement is not difficult; it is a matter of putting something away every month. The key is to start today. You are able to increase this whenever you can, with constant or yearly reviews. There are great tax benefits on Retirement Annuities. Your savings grow up to 25% quicker because you don’t pay tax on your investment growth, and you get tax back by saving every month. Start building towards your wealth today. Speak to your Old Mutual Advisor or your broker about your retirement.

Call Babalwa Jozana on 043 706 4111 • E-mail: bjozana@oldmutualpfa.com

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