Our financial planners are here to help you define realistic financial goals and to assist you in reaching those goals.
DSA services meet the following essential needs
Pre-retirement planning is essentially a two step process
- A tailored financial plan
- Flexibility to accommodate changes in personal objectives, legislation and investment options
- Cost-effective implementation of each personal investment strategy
- Objective, unbiased advice
Step 1 - Determine your monthly income need at retirement
Fundamentally you need to determine, realistically how much you need/want to earn in order to live comfortably at retirement. This figure is normally arrived at by looking at your current expenses and determining which of these will still be present at retirement and which will fall away. For example, rates and taxes remain irrespective of your age or family size, but education costs and bond repayments would probably fall away completely during retirement.
Step 2 - Determine the lump sum needed at your retirement
We use life assurance mortality tables in order to determine what the approximate life expectancy of a client would be. Factors such as the average longevity of parents and grandparents would also be taken into account. We would agree on an assumed inflation rate, as well as what annual income increases you require; this then allows us to calculate the lump sum required at retirement in order to achieve your goals.
Post retirement planning
The initial step in post retirement planning is to determine what type of fund you belong to - a pension, provident, or retirement annuity? Pension funds and retirement annuities allow you a maximum withdraw of one third as cash at retirement, whereas provident funds allow you to take the full lump sum.
Taxation plays an important role in post retirement planning and should be taken into account when looking at income options. Having established what your income requirements are during retirement and taken the important taxation factors into account, a tailor made investment plan can be devised and implemented with your retirement savings.
A DSA Advisor can help you through each step of the retirement planning.