Planning for retirement should start early, as most retirees have to postpone retirement due to insufficient savings. It is important to budget retirement savings as a priority throughout one's career as financial needs change over life stages. Health is a critical factor to consider, as medical costs can significantly impact retirement finances. Retirees may need supplemental income from work or hobbies. Life insurance and timing of pension withdrawals also impact how long savings will last in retirement. Proper retirement planning and budgeting helps ensure goals and dreams can be achieved.

1. PLANNED RETIREMENT
DATE
Many people think that because they
still have many years to retire, it’s not
important to think about it. That’s exactly
where they go wrong. Planning for
retirement is an ongoing task with a long-
term view. Most retirees have to postpone
their retirement date because they
haven’t saved enough.
HOW MUCH TO SAVE
How much is enough money to retire
on? It varies for each person. The short
answer is to save as much as possible
from your very first salary and keep
monitoring your progress.
We have different goals for every phase
of our lives. When you start your career
you probably want to buy a new car to
replace your first ‘skedonk’. When you
get married you’ll want to buy a house.
Then you start a family and need a bigger
house. Every time you probably push
saving for retirement to the back of your
mind. Your retirement savings should be
a part of your financial plan every step of
the way.
HEALTH
A critical factor we often overlook in
planning for retirement is our most valuable
asset – health. If something goes wrong,
the financial impact on your retirement
years could be devastating. Medical costs
are ever increasing, so as a retiree, you
simply can’t live without the safety of
medical aid or a decent hospital plan.
TO WORK OR NOT TO WORK
Not everybody can stop working
altogether when they retire. You could
consult or maybe you have a hobby that
could supplement your monthly income.
LIFE INSURANCE
If you want to make sure your family has
the same financial security when you die
as when you were alive, it’s important
to make sure you have enough life
insurance to keep your expenses to a
minimum at retirement.
TIMING PENSION PAYMENTS
The date you start withdrawing from your
retirement savings will affect how long
your savings last – especially if you have
when to retire from each product is
financial planner.
BUDGET
You might dread drawing up a monthly
budget, but when you retire it’s the
one tool that will help you live out your
dreams. It’s the only way to make sure
your money lasts till the end of each
month.
BUCKET LIST
A bucket list represents all of the goals,
ambitions and wishes you want to
achieve before you die. This list can
focus on your long-term and short-term
goals and aspirations.
Retirement planning should be the
starting point of any goal that you may
have for yourself.
Be on top of your retirement savings,
know what you have saved up so far, the
different vehicles that you are invested in,
what investment products are available
and establish an open relationship with
your financial planner - because knowing
where you’re headed is the best way to
get there.
The word retirement evokes two feelings - happiness, for the day
you’ll get monthly paychecks without lifting a finger, and fear, that
starts gripping you as you get closer to your planned retirement
date. Here are a few things to think about before you retire – and
they’re best addressed sooner, rather than later.
READY, SET AND ACHIEVE YOUR
FINANCIAL GOALS
Rainier Joubert I Financial Planner (CFP®), Alexander Forbes Financial Services
INSIGHT | DECEMBER 2011