Want to enjoy your RETIREMENT? Let Nedbank show you how, as well as - - PowerPoint PPT Presentation
Want to enjoy your RETIREMENT? Let Nedbank show you how, as well as how to make your money last longer June 2017 see money differently Nedbank Ltd Reg No 1951/000009/06. Authorised financial services and registered credit provider (NCRCP16).
Nedbank Ltd Reg No 1951/000009/06. Authorised financial services and registered credit provider (NCRCP16).
Let Nedbank show you how, as well as how to make your money last longer
June 2017
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If you’re properly prepared, retirement can be the best time of your life
be the best time of your life.
need to be mentally, socially, emotionally and physically ready to enter the next stage of your life.
is a “life” after working full-time!
investigate and embrace the new possibilities that await you.
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If you’re properly prepared, retirement can be the best time of your life 1. Being emotionally, physically and fjnancially ready for retirement. 2. Why Financial Planning is vital for a successful retirement. 3. Using a budget tool to assist you to become debt-free when you retire. 4. The importance of Wills and Estate Planning in retirement, to avoid becoming a burden to your loved ones. 5. Cost-effective, safe and secure banking solutions. 6. Investing for your future. 7. Starting a small business to supplement your retirement income.
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Health and wellness Look after yourself before you retire by following a healthy lifestyle, including:
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Be prepared for change Retirement will bring about changes in your lifestyle and the more prepared you are for them, the better. Change can be a good thing, you need change to:
Life can change in an instant but from change comes acceptance, creative solutions and integration.
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Purpose/planning Everyone has a purpose in life, a unique gift or special talent to share. Successful people have clarity about their personal purpose. For this new life stage, you will need to have:
Retirement is both rewarding and challenging!
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Start saving today for the retirement you deserve Most of us dream about the day we can stop working and spend our golden years doing the things we enjoy, like cooking, growing vegetables, spending time with friends and family, travelling or looking after our grandchildren. But the retirement you are dreaming of is only possible if you PLAN for it. Did you know?
retire successfully.
retire reasonably well; you cannot just rely on the money you get from your employer’s retirement fund.
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Good advice for a happy retirement
the better.
whenever you can. Everybody can put something away. It might mean givng up something but saving R5 a day (e.g. less than the price of a soft drink). This small saving on its own can add up to around R150 a month.
year before you retired to maintain your standard of living once you are retired.
would need to earn R7,000 a month after retirement from your pension/ retirement savings.
have of living the life you want to when you retire.
Contributions + investment growth = retirement amount.
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A qualifjed money expert – also known as a fjnancial expert (planner or banker) – will help you to choose the best ways to save and invest your money for retirement. They will look at your current situation in terms of your age, income, any debt or savings you may have and the everyday things you like to do (in other words, your lifestyle). They will then use this information to get a better idea of expected fjnancial needs in retirement.
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A few things you should know about retirement savings:
grow your investment.
retirement.
your investments always match or beat infmation, otherwise you may have to make do with less in retirement.
try your best to preserve your savings and not cash in your accumulated benefjts.
defjned-contribution fund which means that we, as the members, bear the risk of investment growth on our contributions and the company we work for does not. It is therefore critical to keep track of, and to understand, the state of your retirement savings.
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A budget is a plan for what you are doing with your money. It is useful in so many ways:
decision on achieving your goals.
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Budgeting – what are you doing with your money?
Regular income Irregular income Once-off income
Essential items These items are needed to survive and function, and the expenses are inflexible. Non-essential items These items are necessary, but flexible and the expenses could be reduced. Luxury items These items are wants and are not necessary, and the expenses can be cut.
BUDGET/FINANCIAL PLAN
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“Little voice checklist”
Things we don’t really need, but would like to have. Things we must have in order to stay alive.
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(A) Monthly income R (B) Monthly fixed expenses R Net income R Bond/rent R Regular income R School fees R Other R Accounts/instalments R Savings R (C) Variable expenses R Groceries R Airtime R Transport R (D) Discretionary expenses R Item 1 R Item 2 R Total income Total expenses R Surplus or shortfall R
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What is a Will? A Will is a written document (hard copy) that:
Importance of a Will The assets or property of a person who dies without a Will are divided among relatives, according to a set formula. This formula may be far removed from the wishes and true intentions of the deceased person, resulting in a confmict among relatives. The purpose of your Will is to indicate how assets or property are to be divided among your loved ones. But it will also:
Your testamentary trust A trust is an arrangement whereby you give someone else the power to manage your assets on your behalf or on behalf of someone else. Your testamentary trust is established in terms of your Will to manage and protect the assets of minors, other family members, charities or other nominated benefjciaries, and becomes effective upon your death. Your nominated executor and trustee To nominate an executor for the administration of your estate and/or a trustee to manage and protect the assets of your loved ones requires a professional person or institution. Nedgroup Trust Limited is a registered Trust Company and the fjrst trust company to be registered in South Africa, in 1834. We have a wealth of experience and expertise to offer our customers and their families.
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Cost-effective banking – addressing your needs and saving you costs
The Optimum Current Account An easy, cost-effective account that offers a range of discounted benefjts at great value. Free will drafting. Two branch cash withdrawals per month. Four ATM cash withdrawals at a Nedbank ATM per month. Two branch cash withdrawals per month. Debit and stop orders. Maintain at least R10 000 in a notice deposit, fixed deposit, tax-free savings or JustSave account to get these benefits.
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Designed for those who want to use Nedbank’s convenient and easy-to-use digital, self-service and alternative channels. Fixed fee of R50 per month, includes the fjrst eight Nedbank transactions. R2 000 embedded funeral cover. Ability to open the account with no proof of residence (debit card and FICA exemption 17). Maintain at least R10 000 in a notice deposit, fixed deposit, tax-free savings or JustSave account to get these benefits.
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Anytime, anywhere banking. No queues or parking problems.
Easy access to accounts. Get access to statements when needed. Keep track of past and present transactions. Pay 50% less for transactions compared with traditional banking.
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Short-, medium- and long-term savings and investments
Compare our investment options to fjnd your match
Feature 32Day Notice OptimumPlus (for clients aged 55 and over) Nedbank Seniors Green Bond (for clients aged 60 and over) Minimum deposit R250 R1 000 R1 000 Extra deposits Minimum of R100. Not allowed. Not allowed. Investment term Indefinite; a minimum of 32 days’ notice required to access funds. A choice of fixed terms from
A choice of a fixed term of 18, 24, 36 or 60 months. Interest earned Tiered interest rates – larger credit balances attract higher interest. Highly competitive interest rate fixed for term of investment. Highly competitive interest rate fixed for term of investment. Withdrawals Minimum of R100 as long as R250 minimum balance is maintained. Not allowed. Not allowed. Considerations Load free weekly or monthly stop order from a Nedbank current or savings account. Peace of mind knowing extra funds are kept away and safe from temptation. Interest can be paid monthly, quarterly, half-yearly, annually or on maturity. Interest may be paid in advance on investment terms of up to 12 months. Interest can be paid monthly, quarterly, half-yearly, annually
Funds invested are earmarked to fund renewable-energy projects, at no cost or risk to yourself.
21 Pension fund Provident fund Retirement annuity (RA)
How it works Workplace benefit contributions are paid by the employer and the employee. Workplace benefit contributions are paid by the employer and the employee. Anyone can be a member
These contributions are made on your own. No employer relationship required. Retirement age Stated in the member guide (fund specific). Stated in the member guide. From age 55 (as stated in the policy schedule). What happens when I retire?
take one-third as a lump sum.
thirds are reinvested in an annuity income.
to tax.
– take the entire retirement benefit as a lump sum; or – invest all or part in an annuity.
to tax.
take one-third as a lump sum.
must be reinvested in an annuity.
be subject to tax.
Speak to your financial planner to review your current retirement benefits.
22 Living annuity Life annuity
How does it work? You can receive an annuity income of between 2,5% and 17,5% of the total investment. The annuity income can be reviewed on an annual basis. You receive an annuity income for life, which amount is agreed on at the inception of the policy. Do I pay tax? Subject to the Income Tax Act. Subject to the Income Tax Act. Is my income guaranteed for life? No, investment income is not guaranteed due to market fluctuation. Yes, the annuity income is guaranteed for life. What happens when I die? Your beneficiaries will receive the remaining capital when you die. When you die, the annuity income stops and the capital is lost.
Speak to your financial planner to be able to identify the most suitable financial solution for your needs.
23 Product type Life cover Critical-illness cover Disability cover
Benefit Life cover pays out a lump sum amount if you die. The terms and conditions of the policy must be discussed with a financial planner. Critical-illness cover pays
in the event of a critical illness such as cancer or a heart attack. The terms and conditions of the policy must be discussed with a financial planner. Disability cover pays out a lump sum or income if you become temporarily or permanently disabled. The terms and conditions of the policy must be discussed with a financial planner.
Speak to your financial planner to be able to identify the most suitable financial solution for your needs.
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Where to start?
Whether you are starting a business, running an established business or looking to expand, you need a reliable, affordable banking partner who understands the challenges of your business and responds with fmexible solutions to your needs.
Financial information
Managing your banking relationship
Essentials for starting your own business:
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Nedbank Ltd Reg No 1951/000009/06. Authorised financial services and registered credit provider (NCRCP16).
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