SENIOR LIVING
Those saving more for their retirement understand that any credit facility is damaging for their financial situation . Instead , they delayed the purchase , avoided the loan , saved the equivalent of the loan repayment and were then able to afford the purchase without the need for debt .
Over time this diligence pays off in a big way and avoiding or limiting debt puts them in a position to save more .
3 . Push back your retirement
Those employees with better retirement prospects are retiring no earlier than age 65 . The Retirement Gauge found that just under half the members are working towards a retirement age of 65 with a third targeting 60 .
To provide some idea of the impact of retiring early , someone saving from age 30 would need to save an extra 6 % of their salary every month to be able to attain the same 70 % replacement ratio . The question one should ask is not when you should retire but whether you can afford to retire . For those who work for a corporate , the employer usually prescribes a retirement age . Although some employers allow employees to work beyond retirement age in some cases , this may not always be an option .
“ This does not mean that retiring from the corporate means that you need to start drawing a pension . Finding an alternative source of income , even if it ’ s a contract position or a part-time
Retiring at an earlier age , say 60 versus 65 , requires a higher multiple of salary to be accumulated in a shorter time to be able to provide the same level of replacement ratio .
170 NOV 2022 SA Real Estate Investor Magazine