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Keen to grow your retirement savings? Momentum investment guru shares top tips

24 August 2021 3:25 PM
Tags:
Savings
Momentum
retirement savings
Momentum bonus portfolios
Momentum Corporate

Midday Report host Mandy Wiener chats to Momentum Corporate's Chris Cooke about the value of smooth bonus portfolios.

Most South Africans simply aren't saving enough for a financially secure retirement, Momentum Corporate's Chris Cook shares expert advice on how to save for an adequate retirement nest egg, he says the key to investing your money optimally is balancing risk and return.


Looking for a smoother ride to retirement?

Experts advise that you should aim for a retirement income of 75% of your final salary just before you retire.

This is known as the retirement income replacement ratio.

While 75% is the generally accepted target, many fund members are still way off that target.

Momentum Corporate's Chris Cook shares expert advice on how to save and invest optimally for the future:

  • Save enough

You should save at least 15% of your gross income from the age of 30 to 65 to get a 75% income replacement ratio.

  • Earn a decent return

When investing, Cooke says it's important to target inflation-beating investment growth that's typically 3% to 5% higher than inflation

  • Preserve your savings

Do not cash in your retirement savings when you change jobs, warns Cooke.

  • Consider smoothed bonus funds

If you want a safe investment with protection from market volatility, opt for smooth bonus portfolios.

Cooke explains that members prefer to invest in smooth bonus investment portfolios because they provide guaranteed capital protection and investment returns.

Click here to learn more about Momentum's smooth bonus products.

Generally, most of us are not saving enough for a financially secure retirement.

Chris Cooke, Head of Technical Marketing - Momentum Corporate

Smoothing investments involved keeping some of the market returns achieved in good times and using it to boost the returns in times of poor performance.

Chris Cooke, Head of Technical Marketing - Momentum Corporate

This offers a far smoother ride to retirement as members don't experience the same extent of ups and downs as they would if they were invested in portfolios without smoothing.

Chris Cooke, Head of Technical Marketing - Momentum Corporate



24 August 2021 3:25 PM
Tags:
Savings
Momentum
retirement savings
Momentum bonus portfolios
Momentum Corporate

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