Wednesday | 08 April | 2020
- What would happen when I retire?
- What will happen if I lose the ability to generate an income?
- Where can I get the right advice for my needs?
What would happen when I retire?
On the first day we start our job career, we are exposed to products such as a pension fund and a provident fund.
As our job career progresses, the need will arise to make additional provision for our old age. We should look for an investment vehicle that can provide us with a tax advantage and provide good options for growth at a low cost.
These investment vehicles form the basis of the retirement products at our disposal where we can enjoy a tax advantage. By law, we can save up to 27,5% of our gross income or compensation in these vehicles, up to a maximum of R350 000 for the tax year.
Before we know it, we are past the age of 55 and retirement is around the corner. This then is the last few years before retirement, and the most important question to date arises: Have I saved enough for my old age?
What will happen if I lose the ability to generate an income?
The greatest asset an employee has is the ability to generate income. If we lose this ability due to an event such as disability, we cannot finance our own budget. Nonetheless, income protection remains one of the most under-sold products on the market.
The main purpose of income protection is to transfer the risk from us as employees to an insurance company. Therefore, if we lose the ability to earn an income due to illness or injury, the insurance company will step in and pay out our insured amount on a monthly basis.
Where can I get the right advice for my needs?
Everyone’s financial needs differ, and advice to address those needs should be relevant to a person’s current financial position. Therefore, the ideal would be to talk to an independent advisor about our needs. Since these advisors have access to more than one product provider, they can put more options on the table for clients.
Solidarity, through Solidarity Financial Services (FSP 15556), provides independent advice for needs such as retirement planning, income protection and estate planning.
For more information, send an email to email@example.com
* All information was correct at the time of publication.