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File Image: IOL

The importance of having retirement savings

By Opinion Time of article published Aug 7, 2020

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By Bheki Mkhize

As we look back, Savings month encouraged consumers to look at ways to save as we continue to face the challenges and uncertainty that 2020 brings.

Despite the level of uncertainty as a result of the Covid-19 Global pandemic, we continue to encourage consumers to make retirement savings a priority and part of their long-term savings goals.

Many people believe that saving for their retirement is intimidating. The common belief is that retirement saving can wait or happen later in life. However, many consumers don’t understand the importance of having retirement savings from a young age which will benefit them in their golden years.

Putting away a little portion of your salary or other sources of income towards retirement savings will help consumers so that they are able to take care of themselves when they are older without burdening their children or loved ones.

Ideally, you should have started saving for retirement the moment you started earning an income. Even when changing jobs, consumers should try to preserve the retirement savings that they have built up. It’s never too late so start saving now for your future so that you can retire comfortably. The easiest way is to have a regular debit order going into your retirement savings.

We understand that day to day financial difficulties, especially in this Covid pandemic period, lead consumers to consider dipping into their retirement savings. We strongly advise consumers to avoid doing this as it will have a negative long term impact on their retirement savings. Similarly some consumers may be tempted to stop or reduce their contributions towards their retirement savings which will also have a negative long term impact.

Saving and investing should be a priority for everyone. It’s never too late to start saving for retirement as this will help you to retire comfortably one day.

Bheki Mkhize is the CEO FNB Wealth and Investments.

PERSONAL FINANCE

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