Why saving for retirement makes sense

Confronting the mental barriers to saving for retirement is often the harder first investment, before a single rand is put away. A few excuses come up again and again — and most of them hold up less well once you look at what’s really behind them.

1. 1“I don’t have enough money.” Often this is a budgeting problem rather than a true shortage — tracking your spending for a month tends to reveal room that wasn’t obvious before.
2. 2“I’d rather live for today.” A reasonable instinct, but the honest alternative to saving isn’t freedom — it’s relying on family, or the state, later. Balancing today and tomorrow beats abandoning one for the other.
3. 3“I’m already taking care of family.” Planning for your own future is part of taking care of them, not separate from it — particularly if you don’t want your own children carrying that responsibility for you one day.
4. 4“I don’t trust company retirement schemes.” You aren’t limited to one. A retirement annuity in your own name gives you control over your investments and stays with you if you change jobs.
5. 5“What if my investment manager isn’t around by the time I retire?” Retirement savings are held in trust, kept legally separate from the manager’s own assets, and overseen by a board of trustees — some of whom are required to be independent.

This article is general information and not advice. Silke Financial Services is an Authorised Financial Services Provider, FSP No. 12462.