Pretoria News

What’s your retirement goal personality?

EVER heard about the Financially Independent, Retire Early (Fire) community?

These are mostly millennials in their thirties who are saving as much as they can so that they can retire early, giving them the financial freedom to spend the rest of their lives doing what they love most, whether it’s travelling, working on a passion project or volunteering.

For most people (even millennials), retiring early – even before 60, never mind 50 – is a pipe dream. According to the 10X Investments Retirement Reality Report 2020, only 44% of people between the ages of 25 and 34 expect to be able to retire by the age of 60.

Furthermore, a whopping 62% of all respondents who left corporate retirement funds in the previous year had cashed in their retirement savings, which is one of the biggest retirement saving mistakes and suggests no plan to retire in the near future.

But it doesn’t have to be that way. By starting to save early, remaining disciplined and spending wisely, the idea of retiring well ahead of the typical age may not be all that far-fetched. No matter your current age or circumstances, you can still give your retirement savings a boost.

Take the quiz below to find your retirement goal personality: 1. On hearing that you have been awarded a salary increase, you: a) Can’t wait to spend it on those new kicks you’ve been eyeing. b) Breathe a sigh of relief. Now you can finally make a dent in your credit card balance. c) Look forward to adding to your monthly contribution to your retirement savings. 2. You think the difference between a retirement annuity (RA) and a pension fund is: a) No clue, but I need to worry about that only when I’m in my 60s, right? b) Don’t really know, but it shouldn’t matter as long as I have one of them, should it? c) A pension fund is what I have at the office, which is supplemented by the savings I make into my RA, my individual policy. 3. You live by the saying… a) Yolo — you only live once! b) The secret to happiness is accepting your lot in life. c) The best way to take care of your future is to plan and prepare in the present. 4. To you, a budget is… a) Budget? What’s that? b) A nice-to-have, something to look at on the occasional quiet Saturday. c) An essential part of your roadmap to financial freedom. 5. You’ve landed your dream job, it’s time to move on. What about the money you have saved in your current employer’s pension fund? a) Cash out! You need a new wardrobe for your new gig. b) Take half the money to pay debts and have some fun, and move the rest to the new company’s pension fund. c) Do some research and either move the whole balance to the new company’s fund or to a carefully selected low-cost preservation fund.

LIFESTYLE

en-za

2021-09-18T07:00:00.0000000Z

2021-09-18T07:00:00.0000000Z

https://pretorianews.pressreader.com/article/282016150461362

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