When it comes to savings, there is no blanket approach that covers every life stage. In your 20s, you have completely different priorities compared to your 50s. As you get older, your priorities change and so your savings approach should be tailored to your life stage.
“While it is always advisable to start saving for your retirement as early as possible, as the saying goes, “It’s never too late to start” André Wentzel, Solutions Manager at Sanlam Savings advises. He recently provided savings tips for different life stages and the pitfalls to avoid. Good content to share with your client and to keep the engagement on track:
|●||When you’re in your 20s it is important to start saving, especially if you’re one of the 38% of millennials with no formal retirement plan or tax-free savings. Even saving small amounts like R150 a month can earn you worthwhile compound interest.|
|●||When you’re in your 30s you need to be smart about bonuses and promotions. Use the extra money to kick-start an emergency fund, pay off debts or boost your retirement savings.|
|●||When you’re in your 40s and you haven’t started saving for retirement, you’re going to have to make some drastic compromises according to advice from a financial planner. It is therefore important to check in with your planner regularly to ensure you’re on track.|
|●||When you’re in your 50s, start thinking about what you want your retirement – ideally and realistically – to look like and do the sums so you know what you need to achieve this. Don’t leave this process too late.|
|●||When you’re in your 60s, you’ll need to carefully manage your money to ensure you have sufficient income for the rest of your life.|
Click here to download the detail of tips per life stage.
In a similar article, Tamryn Lamb, head of retail distribution at Allan Gray, looks back at her 30s and shares the valuable financial lessons she learnt from reflecting over that period. Click here to read.