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Raising a family is a journey filled with milestones and unforgettable moments. And what makes those moments possible?
The opportunities you provide – from giving your children a great education to providing a home filled with love and security. Every financial decision you make today shapes not just your own future, but theirs too.
As parents and partners, we don’t see providing for our families as a burden – it’s something we do with pride and love.
But while we focus on their present needs, we often forget about securing our own future. And the truth is, planning for retirement isn’t just about you – it’s one of the greatest gifts you can give your family.
Retirement savings: a gift that lasts a lifetime
Many people put off saving for retirement because they feel their family's current financial needs take priority. But here’s the reality: setting aside money for your retirement isn’t selfish – in fact, it’s the opposite.
“By making room in your budget for retirement savings now, you’re giving your children the freedom to focus on building their own futures one day – without the financial pressure of supporting you later in life,” says Keith Peter, Advice Manager at Old Mutual.
And the best part? Saving for retirement is more affordable than most people think. Thanks to tax benefits from a retirement annuity (RA), you can build financial freedom while getting tax back every year.
Start small, dream big
A common myth is that you need huge sums of money to start saving for retirement. That’s simply not true.
With a retirement annuity, you can start saving small amounts now to get the ball rolling and then increase your contributions towards your retirement savings later. But even better, you could get a portion of your contributions back every year in the form of a tax rebate from SARS (South African Revenue Services). You will also benefit from the power of compound growth - the earlier you start, the more your money grows.
The goal? To give yourself the financial freedom to live life on your own terms – to travel, enjoy hobbies, and make new memories with your family, without worrying about money or having your kids support you financially when they have their own families to look after.
A simple five-step plan (and free tools!) to get started
Step 1: Maximise your tax benefits
Want to put money back in your pocket while securing your future? When you invest in a retirement annuity, you reduce your taxable income, which means you could get tax back at the end of tax season.
To see exactly how much you could get back, try Old Mutual’s free online Tax Back calculator.
Step 2: Let compound growth work for you
The earlier you start, the more your money grows.
“Think of your savings as a snowball rolling down a hill and getting bigger as it goes. At first, you might only earn a little bit of growth on your investment, but then, in time, you start earning growth on that growth… and so the cycle continues to pick up momentum. The longer your ‘retirement snowball’ rolls along, the bigger and faster it grows,” says Keith Peter.
Old Mutual’s Retirement Annuity calculator helps you visualise this growth.
Step 3: Work out how much you’ll need during retirement
How much will you need to maintain your lifestyle in retirement? Inflation means that life will be more expensive in the future, so it’s important to plan ahead.
Old Mutual’s Income Annuity calculator helps you determine the monthly income you could receive to live the life you envision.
Step 4: Find easy ways to save
Making small tweaks to your daily spending and behaviour can free up some money in your monthly budget – and it doesn’t mean you have to give up on having little luxuries now. With the help of Old Mutual’s Pay Yourself First calculator, you can review your monthly budget to see where you can free up money to save towards your retirement without significantly impacting your lifestyle.
Step 5: Just start
The most important step? Taking action. The earlier you start saving, the more options and flexibility you’ll have in the future. Even small amounts now can make a big difference to your savings.
secure A future full of possibilities with the right help
While these steps and tools are a great place to start, you don’t have to figure this out on your own. A financial adviser can guide you through the specifics of putting a personalised retirement savings plan into action.
They have the expertise to assess your personal needs, structure your contributions to maximise tax benefits while keeping your current financial responsibilities in mind, and adjust your plan over time to ensure your goals are always on track.
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Imagine a future where both you and your family have the financial security to live your dreams and create new memories together. It begins by taking action today - explore Old Mutual’s free retirement planning tools at www.oldmutualretirementtools.co.za or speak to a financial adviser for expert guidance.
Disclaimer
The tax benefits and refunds referenced in this article are based on current South African Revenue Service (SARS) tax regulations and are subject to change. The potential tax refund from retirement annuity contributions depends on individual tax circumstances, including total taxable income, other deductions, and SARS assessment.
Investment growth is not guaranteed, and past performance is not indicative of future results.
Old Mutual Life Assurance Company (SA) Limited is a licensed FSP and Life Insurer. Ts & Cs apply.