Growth & Jobs | Setting aside a ‘little extra’ can significantly boost your retirement fund - Blagrove
Published:Tuesday | October 25, 2022 | 12:07 AM
INVESTING WISELY and consistently during your productive years is an almost sure way to enjoy peace of mind at retirement.
However, Othneil Blagrove, senior manager of sales and marketing, JN Life Insurance, says in addition to starting to invest early and wisely, persons can derive substantial benefits if they consider setting aside a little extra.
Blagrove stated that for seniors to enjoy their retirement, it is important that they optimise their investments when they are younger to adequately cover expenses at retirement, especially since people are living longer.
“Pension schemes represent a great option to generate wealth so you can enjoy life when you retire. For example, for a 40-year-old who plans to retire at 55, we normally advise them to invest 20 per cent of their income in a retirement scheme. So for 15 years you will be contributing towards your retirement. However, if at 55 you decide to go to 70 because your relatives lived until their 90s, it means that based on the goodness of God, you will get to that age. Therefore, you need to plan for the years between 70 and 90,” he advised.
“What it also means is that even if you are putting aside $500 per week, you are ensuring that you are securing your future up to 90,” he added.
Blagrove added that as persons get older, considering additional investment options is a prudent move.
“When you put savings in a savings account, it is taxed. With an individual retirement scheme that goes towards your pension, it is not taxed until you are about to get it so all the interest and high yield is on your money. It’s not like stocks where you might lose on your investment. Every dollar that you save in an individual retirement scheme is guaranteed, meaning it will be returned to you with interest upon retirement,” he explained.
“Even at 55, it is still not too late to plan for retirement. You still have another 10 years to work, which you can use to plan for the days after you have retired. If at 55 you were saving for retirement and have paid off your mortgage, and decide to concentrate on your gardening or go on a cruise, then that money will be there for you to start benefiting from it,” he pointed.
“When you have retired, you need to start benefiting from the fruits of your labour. Retirement should be about enjoying life. I encourage persons that if you have worked hard for 40 or 50 years, saved correctly, enjoy your money and life. Don’t hoard it. Enjoy yourself and invest it in assets that continue to benefit you while creating generational wealth,” he advised.