With the Easter break finally here, we can finally have some of that special “me time”. It’s a time for visiting friends and family, Easter egg hunts and hot cross buns… and of course an abundance of chocolate.
While the kids are collecting their chocolate Easter eggs, why not start thinking about putting away your own golden nest egg for those later years…
So, take some time out for your “future-self” and check out our 3 eggcellent reasons to start saving for retirement.
When we think of retirement, we think about relaxing. Taking those years to finally do what we love. But what doesn’t enter our thoughts is how much money we are going to need to have the kind of retirement we deserve. The golden years can be challenging financially.
Retirement isn’t about how much you earn, it’s about how much you save. And we need to save enough money to keep us going for several years.
What can you do today, that will make it easier for the years that matter most?
Here are 3 reasons why you should start saving today.
1. The Golden Years last longer than you might think
Life expectancy has increased. Which means, retirement is a lot more challenging than what it might seem.
Once you’ve retired, you’ll need an income that will last you up to 20 to 30 years. And in some cases, even longer. Depending on when you retire and how long you live, you’ll be digging into that savings fund for quite some time.
And with price increases every year, things aren’t going to be any easier for us financially.
2. Compound interest makes an eggcelent retirement fund
There’s a magical place where money makes more money.
It’s called a savings account that earns compound interest. And we should all take advantage of it.
The sooner you start saving for those golden years. The quicker you’ll grow that golden nest egg.
Put some money aside each month that will grow your golden egg over the next 40 years. It’s the easiest way to start your retirement fund.
So, get cracking!
3. You Pay Less Tax on Retirement Savings
Benefit from tax incentive retirement funds. Start investing your money in a retirement annual (RA) funds. These are private retirement savings funds that earn tax benefits.
Contributing towards an RA fund are tax deductible by up to 27.5% of your taxable income. Or a deduction of up to R350 000, depending on your income.
Investing in an RA fund will decrease your annual tax. And the growth you earn in an RA fund is tax free.
So, you have no egg-cuses. Start saving for your future today.
Debt Could Stop You from Growing Your Retirement Nest Egg
If you’re overwhelmed with debt it can be hard to put money away for the future. Tackle those bad eggs and get them out of your basket to make room for the golden egg. Debt Rescue has helped thousands of South Africans’ with unmanageable debt. Take that first step and your future self will thank you.
Sign up to our weekly blog for tips on how to manage your money wisely and start saving for those golden years.