Not only will it protect you when you eventually retire; but also helps to eliminate the additional stress of living without an optimal monthly income.<\/p>\n
\u201cWith the economy in doldrums and increasing household costs, we encourage clients to evaluate their current retirement plans to ensure that it is still in line with their long-term goals. A well-planned retirement will help you have a comfortably retirement,\u201d said Preenay Sathu, from FNB.<\/p>
Keeping abreast of your current retirement plan and contribution is important. Almost all retirement plans are subject to regulation and supervision in terms of the Pensions Funds Act 1956. .<\/p>\n
Any employee can claim a deduction of up to 27.5 per cent of your total taxable income or remuneration, capped at R 350 000 a year.<\/p>
\u201cContributing to the maximum ensures that you have sufficient retirement savings in the long term and ensures that you get the maximum tax deduction possible,\u201d said Sathu<\/p>\n
Don\u2019t over compensate when it comes to your retirement plans. Your retirement plan needs to be realistic and firm focus needs to be placed on what you will need when you eventually retire.<\/p>\n
\u201cHealth will always be a prime focus as we get older, so ensure that as part of your retirement plan you are able to ensure you can afford quality medical and health benefits.\u201d<\/p>\n
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