Real Estate Investor Magazine South Africa April 2015 | Page 66

LESSONS

How to Easily Save for

Retirement
Three ways you can save
for your retirement

BY VANGILE MAKWAKWA AND CHENINE ANN GOUWS
There are three different ways that South Africans can
save for retirement:
1. Pension Fund
Your company works with you to save for retirement
and they even match your savings.
A pension fund is normally instituted by the company
that you work for. The bigger the company the more
they will invest into your pension.
The company puts away a percentage and you put
away a percentage into your pension fund. This is
normally 5% - 7.5% and the company will do the same.
This percentage, however, can be changed by your
company from time to time.
However, the company is not obligated to match the
amount that you put in every month. It is a voluntary
thing that when the company decides whether they are
setting up a pension fund they decide how much they
want to put in.

“The earlier you start putting
money away the better.”
Nobody can beat time in the market spent saving.
The earlier you start putting money away the better.
Save when you are young and you will reap the rewards
when you are older.
2. Retirement Annuity
You save for retirement yourself. It is good for
entrepreneurs. Parents can take out a retirement
annuity for their children with a minimum premium
of R200 a month. You can even start saving once your
child is born.
3. Provident Fund
The company saves for retirement for you and you do
not have to contribute anything. Death and disability
cover can be added to both pension and provident
funds.
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April 2015 SA Real Estate Investor

RESOURCES
Wealthy-money.com
www.reimag.co.za