Plan your golden years

More often than not people take out a retirement annuity (RA) not because they want to but because they feel obliged to.

More often than not people take out a retirement annuity (RA) not because they want to but because they feel obliged to.

Acknowledging this perception, Liberty Life has launched a new campaign called Love the Taxman, which highlights the fact that RA investors can get up to 40percent of their investment back.

Liberty Life divisional director of marketing Howard Fox says: "We realised that many people are unaware of just how much they can benefit from this, despite the fact that the government has created a sizeable tax concession as part of its drive to create a culture of long-term savings in the country.

"So the Love the Taxman campaign is aimed at getting people to question if they have saved enough for retirement.

"Clear communication that highlights the tax incentives linked to taking out an RA motivates them to do so in a fun and entertaining way."

A recent survey found that 47percent of people who have reached the age of 65 are dependent on relatives, 31percent are forced to continue working and 16percent are dependent on a state pension - a mere R850 a month. Only 6 percent are financially independent. A compelling reason to start saving.

Other key reasons to take out an RA include the trend towards increased longevity owing to improved medical technology, meaning that people live longer.

Early planning makes all the difference. So the sooner you start saving for your retirement, the better your chances are of enjoying the golden years that you deserve.

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