{"id":264926,"date":"2025-11-03T06:58:49","date_gmt":"2025-11-03T07:58:49","guid":{"rendered":"https:\/\/www.premium-partners.net\/?p=264926"},"modified":"2025-11-04T10:10:41","modified_gmt":"2025-11-04T10:10:41","slug":"6-powerful-habits-that-will-transform-your-retirement-savings","status":"publish","type":"post","link":"https:\/\/www.premium-partners.net\/fr\/builder\/6-powerful-habits-that-will-transform-your-retirement-savings\/","title":{"rendered":"6 powerful habits that will transform your retirement savings"},"content":{"rendered":"

This post<\/a> was originally published on this site<\/a><\/p>

<\/p>\n

Whether you are saving for retirement, a rainy day fund, or a future goal, the most important step is getting into the habit of saving. <\/span><\/p>\n

Six habits to adopt when you are saving for retirement <\/strong><\/p>\n

We hear so often that we are not saving enough for retirement. People also quote statistics such as that only 6% of South Africans can retire well. I have heard that this number was thumb sucked and that it gets repeated by an industry that does not really know how many people can retire comfortably. <\/span><\/p>\n

What does well and comfortable mean anyway? This differs for every person. My financial adviser has worked out my savings goal for retirement by taking my current income and projecting it into my retirement years. He also worked out how inflation will erode my savings. This is to make sure that I will maintain my current lifestyle one day. Some people say you should save 17 percent to 30 percent of your income to be on the safe side. <\/span><\/p>\n

What I do know is that you cannot go wrong with these six savings habits for your  retirement: <\/span><\/p>\n

Start early <\/strong><\/p>\n

I have heard my actuarial colleagues say that time is like yeast for savings. This is because of compound interest \u2013 when you earn growth not only on your investment, but also on the interest you have earned already. It means the earlier you start, and the more you save early on, the less you have to save later (see my example below). <\/span><\/p>\n

Top up when you can<\/strong><\/p>\n

Because of the great tax breaks you receive for looking after your own retirement, topping up your retirement savings with a windfall here and there is a great way to add energy to the growth. Plus, you do not pay tax on your growth. <\/span><\/p>\n

Keep up with inflation <\/strong><\/p>\n

As I have mentioned above, inflation is a hungry worm that eats away at the buying power of your money. What you can buy with R500 now is not going to get you far in 20 years. That is why I increase my savings amount by at least the current inflation rate every year.<\/span><\/p>\n

Apply debit order discipline <\/strong><\/p>\n

When you force yourself to save before you spend with a monthly debit order, it is easier to discipline yourself. I am not a Hercules who can withstand the pressures of what needs to be paid and enjoyed every month, but it helps to save up front for my salary during retirement. <\/span><\/p>\n

Do not jump from fund to fund <\/strong><\/p>\n

Endlessly jumping to the next best investment costs you money. Today\u2019s best-performing fund will probably not be tomorrow\u2019s winner. Make sure that your investment fits your risk appetite and keep your eyes on the long-term. Retirement is a marathon, and over a long stretch, the market hiccups even out. <\/span><\/p>\n

Consider more than one basket <\/strong><\/p>\n

You have heard that one should not put all your eggs in one basket. It usually means you should not put all your money in the same kind of asset to spread the exposure it can get.  In this case, I also mean splitting your savings over more than one product. By the time you retire, you will have a choice \u2013 Product A can pay out while Product B can earn a bit more growth before you need it. <\/span><\/p>\n

The most important point is just to start. Let me illustrate this by showing you the difference between saving the same amount, R1 200 every month, and increasing it by 6% per year (to stay on par with inflation). We assume a growth of 10% per year. <\/span><\/p>\n

If you save for 20 years, it will grow to R1 324 418 (R412 960 in today\u2019s terms). If you save for 30 years, it will grow to R4 403 952 (R766 773 in today\u2019s terms). An extra 10 years means your savings can be worth more than three times more. Now that is huge. <\/span><\/p>\n

On top of the six savings habits, imagine a seventh: I do what I set out to do \u2013 I have started my retirement savings plan, and I am sticking to it. Now that is getting into the swing of saving things. <\/span><\/p>\n

This approach reflects Momentum\u2019s Science of Success, showing that focused, consistent financial decisions are the key to long-term security.<\/span><\/p>\n

* Jonas is the head of marketing at Momentum Savings.<\/em><\/p>\n

PERSONAL FINANCE<\/strong><\/p>","protected":false},"excerpt":{"rendered":"

Whether you are saving for retirement, a rainy day fund, or a future goal, the most important step is getting into the habit of saving.\u00a0Six habits to adopt when you are saving for retirement\u00a0We hear so often that we are not saving enough for retirement. People also quote statistics such as that only 6% of South Africans can retire well. I have heard that this number was thumb sucked and that it gets repeated by an industry that does not really know how many people can retire comfortably.\u00a0What does well and comfortable mean anyway? This differs for every person. My financial adviser has worked out my savings goal for retirement by taking my current income and projecting it into my retirement years. He also worked out how inflation will erode my savings. This is to make sure that I will maintain my current lifestyle one day. Some people say you should save 17 percent to 30 percent of your income to be on the safe side.\u00a0What I do know is that you cannot go wrong with these six savings habits for your\u00a0 retirement:\u00a0Start early\u00a0I have heard my actuarial colleagues say that time is like yeast for savings. This is because of compound interest \u2013 when you earn growth not only on your investment, but also on the interest you have earned already. It means the earlier you start, and the more you save early on, the less you have to save later (see my example below).\u00a0Top up when you canBecause of the great tax breaks you receive for looking after your own retirement, topping up your retirement savings with a windfall here and there is a great way to add energy to the growth. Plus, you do not pay tax on your growth.\u00a0Keep up with inflation\u00a0As I have mentioned above, inflation is a hungry worm that eats away at the buying power of your money. What you can buy with R500 now is not going to get you far in 20 years. That is why I increase my savings amount by at least the current inflation rate every year.Apply debit order discipline\u00a0When you force yourself to save before you spend with a monthly debit order, it is easier to discipline yourself. I am not a Hercules who can withstand the pressures of what needs to be paid and enjoyed every month, but it helps to save up front for my salary during retirement.\u00a0Do not jump from fund to fund\u00a0Endlessly jumping to the next best investment costs you money. Today\u2019s best-performing fund will probably not be tomorrow\u2019s winner. Make sure that your investment fits your risk appetite and keep your eyes on the long-term. Retirement is a marathon, and over a long stretch, the market hiccups even out.\u00a0Consider more than one basket\u00a0You have heard that one should not put all your eggs in one basket. It usually means you should not put all your money in the same kind of asset to spread the exposure it can get.\u00a0 In this case, I also mean splitting your savings over more than one product. By the time you retire, you will have a choice \u2013 Product A can pay out while Product B can earn a bit more growth before you need it.\u00a0The most important point is just to start. Let me illustrate this by showing you the difference between saving the same amount, R1 200 every month, and increasing it by 6% per year (to stay on par with inflation). We assume a growth of 10% per year.\u00a0If you save for 20 years, it will grow to R1 324 418 (R412 960 in today\u2019s terms). If you save for 30 years, it will grow to R4 403 952 (R766 773 in today\u2019s terms). An extra 10 years means your savings can be worth more than three times more. Now that is huge.\u00a0On top of the six savings habits, imagine a seventh: I do what I set out to do \u2013 I have started my retirement savings plan, and I am sticking to it. Now that is getting into the swing of saving things.\u00a0This approach reflects Momentum\u2019s Science of Success, showing that focused, consistent financial decisions are the key to long-term security.* Jonas is the head of marketing at Momentum Savings.PERSONAL FINANCE<\/p>","protected":false},"author":1,"featured_media":52592,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-264926","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-builder"],"_links":{"self":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/264926","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/comments?post=264926"}],"version-history":[{"count":1,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/264926\/revisions"}],"predecessor-version":[{"id":264927,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/264926\/revisions\/264927"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/media\/52592"}],"wp:attachment":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/media?parent=264926"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/categories?post=264926"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/tags?post=264926"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}