The importance of saving for retirement

can change the trajectory of your life and that of your children.

Statistics inform us that only 6% of South Africans can afford to retire, and whilst structural inequalities have added to that number, we at ThuthukaSA want to change the narrative around “Black Tax” and how it is affecting the youth.

If you are 25 years old and you will retire at 65 years of age so you have 40 years to save for your retirement. That is plenty of time to plan, however, it is up to you to decide how to allocate your salary.

If you invest R500/pm that amounts to R6 000/pa. If you increase your contributions by 5% annually, and you assume an interest of 8% per annum, do you know that your R500 could turn into just over R3mil in 40 years?  

Remember, you should not withdraw the funds at any point and the future value amounts depend on how the funds perform over the years. This is a good idea of how you could turn your R500 into millions overtime.

Contact us for a more detailed and personalised  consultation.

Remember, it is important to save ahead of time which will increase your chances of breaking the cycle of relying on your family for assistance in the future. Furthermore, who doesn’t want to have a few million rands in savings to look forward to?

In addition, when you have diversified savings and investments to rely on, the less likely you are to takeout expensive short term debt like personal loans and credit cards.

Retire comfortably and contact us so that we can help you set up the relevant investment plans suitable for you.

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