Preserving Your Retirement Savings
Trustee Bennie Mabudafhasi offers advice on how to preserve your retirement savings.
When the Fund discusses retirement with our members, the sad reality is that many of you are just not ready to retire, as you have not saved enough.
Most of you have 40 years in which to save by the time you reach retirement age. Bad decisions that you make during these 40 years can result in you having a poor pension. This means that you will have insufficient income to live on once you retire.
Save now for your future
Save during your working life so that you can pay yourself an income when you are retired.
At retirement, your employee-employer relationship comes to an end and so will your regular monthly salary. From then on, you will have to use your retirement savings to provide yourself with an income so that you can continue providing for yourself and your family.
GROW YOUR MONEY WITH A PRESERVATION FUND
A preservation fund is a personal retirement savings vehicle that allows you to preserve and grow your benefits in a tax-efficient way.
- You can transfer your pension fund to a preservation fund in the event that you are dismissed or retrenched, or if you resign.
- A preservation fund gives you the flexibility of allowing you to make one withdrawal (of up to 100%, depending on the source) before you retire.
- Keeping your savings in a preservation fund will help you resist the lure of short-term spending.
- If you have an emergency, a preservation fund offers you one chance to access your savings.
To learn more, read the article What are the benefits of a preservation fund?
your funds if changing employers
While saving for retirement on a regular basis and throughout your career is very important, preserving your funds when changing employers must be at the top of your list of priorities.
To learn more, read the article The impact of cashing out your retirement savings.