Am I saving enough?

A Fin24.com user asks:

I contribute almost R1 000 a month to two retirement annuities and currently contribute R5 800 (inclusive of employer portion) per month to my company provident fund.

I am 38 years old and want to retire at 60.

Am I on the right track?

Old Mutual responds:

It is recommended that you contact your financial adviser or broker and complete a financial needs analysis with respect to your retirement planning need.

While some provision is in place for your retirement needs, it is not clear whether the existing provision will be enough. Your financial adviser or broker will be able to capture your financial needs and objectives, including the retirement term you need to make provision for.

By making certain assumptions, which are not guaranteed, about growth, term of investment and inflation, among others, your adviser will be able to project whether the existing provision is likely to be adequate.

This financial needs analysis will form part of your own financial plan, which will provide the framework for future ongoing discussions with your adviser, to ensure that your retirement planning remains on track and in line with your needs and objectives.

- Fin24.com