Myths about retirement
Here are 4 myths about retirement planning. The message is simple - stop putting of your retirement planning!
- It’s too late to start saving.
Rather start late, than not start at all! The power of compound interest (i.e. interest on top of interest) means that the earlier you start saving, the more money you will eventually have. But if you haven’t been thinking of retirement savings, stop putting it off! The time to start is now! Contact Us to see what we can do to help.
- It is better to put your money in the bank.
Money in the bank gets eroded by inflation, and you pay tax on the interest generated. You need to expose your money to faster growth potential through retirement annuities, tax free saving plans and unit trusts.
- Your retirement fund has to be a pension.
You can save for your retirement years only through a pension or provident fund. But to really ensure you have a financially secure retirement you need to increase these savings with retirement annuities and unit trusts.
- Financial advisors only sell retirement annuities to make money.
Not true. Since October 2004, all advisors have to be licensed with the Financial Services Board and accredited to prove they are fit and competent to give you the best advice regarding your investments. You are entitled to know how much you are paying in commission and administration costs. MST is registered with the Financial Services Board of South Africa and is an approved Financial Services Provider.
The message is simple - stop putting off your retirement planning. Contact Us today and let us help you with this extremely important part of your financial planning.