According to the South African National Treasury, fewer than 10% of the South African population will have enough money to retire comfortably. Most people, unfortunately, don’t have a decent understanding of the requirements of retirement or how to invest their money correctly. We have a few guidelines you can follow to make sure that you’ll be just as comfortable in retirement, as you are now.

Determine your retirement goals

Before you can think about putting money away for your retirement, you must first identify exactly what your ideal retirement looks like. Would you like to live more luxuriously than you do now? Do you want to purchase a property? Where would you like to live out your retirement? Would you like to travel once retired? These are all aspects that will influence your retirement plan. Make sure you map out your ideal retirement and use it as a basis to work from.

Learn about investing

Oftentimes it’s best to invest in a simple, transparent retirement plan with easy to understand terms and fees – the last thing you want is to be losing most of your investment to fees that don’t suit your retirement needs. Speak to a financial advisor who specialises in retirement annuities to determine exactly what plan will suit you best.

Self-discipline

Most become tempted to access their retirement funds at the first available opportunity – when changing jobs for example, but this is one of the worst things you can do. For example, if you want to start a business, rather make another plan, don’t withdraw funds from your retirement. If your business venture fails, all of your retirement savings will be gone and you’ll have to start again.

Lower cost of living

The less you need to survive now, the more you’ll be able to save for your retirement. This point ties hand-in-hand with setting your retirement goals. What do you want your standard of living to be when you retire? If you’re short of being able to achieve those goals with your current lifestyle, you may want to adjust your living costs now in order to save more for later. Besides, if you get used to living with less now, it’ll make living with more a luxury when you eventually retire.

Consider moving

You’ve lived and worked in Sandton your whole life – is this where you want to retire though? When you do your retirement planning, it’s important to take into account the area in which you want to settle. If you move to a quieter, less populated area, you’ll find that you’ll be able to save money. Generally, big cities and coastal areas are quite expensive due to tourist value – but the smaller towns and quieter suburbs make great retirement locations.

Not going to make it? Work harder.

You just can’t see a way to pay any money into your retirement savings? You need to work harder. Whether it be starting a business on the side or getting a part-time job, saving for your retirement is more important than that little bit of free time you currently have. Make sure though, that any extra income you make goes straight into your retirement savings and doesn’t form part of the money you simply can’t part with every month.

As difficult as it may be now to implement these suggestions, it will be worth it in the end as you’ll be comfortable. Our years after retirement are supposed to be blissful and enjoyable – make sure you make it happen.