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Your Retirement
You dream about retiring, you know about retiring, but you don’t do enough about it.
You need to start working on your retirement long before you reach your retirement age. The earlier you save, and plan for your retirement, the better your decisions will be.
Most people need to survive on their pension for over 25 years. That is 30% of your live time. Until now most people had a state pension. But that is changing fast, and everyone needs to look after them self’s.
Lets look at the following:
Your earnings at age 20, starts at R10 000 per month and it increases by 8% per year.
At age 65 you’ve earned about R54 000 000 in total
At your retirement age 65 you will need R28 m to retire. (incl. inflation etc) That means at a 0% interest rate you need to save 50% of your income. That means, for you, retirement is out of the question for now. BUT if you do something about it early in you life you will most probably retire.
Have a look at the graph to see the cost of delaying your retirement planning.
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Minimum Contribution required, if retiring at age |
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Starting Age |
65 |
60 |
55 |
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20 |
9.00% |
12.00% |
19.00% |
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30 |
13.00% |
18.00% |
27.00% |
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40 |
22.00% |
33.00% |
54.00% |
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50 |
40.00% |
85.00% |
210.00% |
At age 40 you need to save 33% of your salary to retire with a similar income as now.
For further advice on your retirement or for financial planning advice, give us a call now.
Your first hour appointment is free.
Sampie Kemp
Tel: 012 547 3769
Cell: 082 494 5624
Skype: SampieKemp
email:skemp@bluecare.co.za
Bluecare Long term and Short Term Insurance, Business, Property Brokers.
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