{"id":926,"date":"2017-03-27T12:41:50","date_gmt":"2017-03-27T10:41:50","guid":{"rendered":"https:\/\/www.namfisa.com.na\/educates\/?p=926"},"modified":"2025-07-19T20:41:31","modified_gmt":"2025-07-19T18:41:31","slug":"why-should-i-save-for-retirement","status":"publish","type":"post","link":"https:\/\/www.namfisa.com.na\/educates\/why-should-i-save-for-retirement\/","title":{"rendered":"Why should I save for Retirement?"},"content":{"rendered":"\t\t
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Why You Should Consider a Pension<\/h3><\/span><\/div>
\nIf you were offered the chance to turn N$10 into N$100, there\u2019s a good chance you\u2019d be interested. Then, if you were told you were putting this money into an official scheme where the employer also adds a couple of dollars, so you in turn only needed to put in N$8, that would likely make the offer even more attractive.

\n\nWondering what this scheme is? It\u2019s a pension. Interested? You should be. It could be one of the best financial decisions you ever make.\n<\/blockquote><\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Main Objectives of a Pension<\/h3><\/span><\/div>
Contrary to some believes, a pension only has three main objectives; i.e.:

\n\n1) Saving for your retirement;

\n2) Saving in case you become disabled and are no longer able to work; and

\n3) Saving for your dependants in case you pass on.<\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Pension Saving is Easier Than You Think<\/h3><\/span><\/div>
Saving for your pension is easier than you may think.

\n\nIt\u2019s not some complicated and boring process that should be put off \u2013 but a savings scheme with great tax advantages. If you do not belong to a pension scheme provided by your employer, you can still save towards your retirement by taking out an annuity through an insurance company. Annuity savings have a tax benefit as the Government is trying to encourage people to save towards their retirement as this will in future lessen the burden of the State to provide State Grants. It is also important that when you change jobs, you do not take your pension benefits to spend but rather transfer it to your new employer.\n<\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Why You Need a Pension<\/h3><\/span><\/div>
Why should you save for your future? As much as you may feel nothing bad would ever happen to you or that you will forever be young, there is going to come a time when you can\u2019t work anymore and therefore can\u2019t earn an income. That may seem a long way off but the sooner you start saving for the future, the sooner you will ensure it\u2019s a happy and enjoyable one, rather than a miserable existence. And if you actually sat down and did the sums of how much you need to enjoy a comfortable retirement you may be quite shocked; hence the need to start saving early.

\n\nStart saving for your retirement as early as possible, even if it is a relatively small amount. Supposedly, you can save just N$10 when you\u2019re aged 25, and this pension investment could grow to N$20 at age 32, then N$40 at age 39, N$80 at age 46 turning into N$160 at age 52 and N$320 at age 60. If you delay starting your pension until age 39, your N$10 will only turn into N$80, which neatly demonstrates the huge benefit of starting earlier.

\n\nThese figures are only rough estimates as pension monies can be invested in a wide variety of ways and with all investments there is a risk \u2013 as anyone with cash in shares or stock markets will have noticed in recent years. So it\u2019s important to understand where you can put your money, and how you can monitor how well it is doing.\n<\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Keep an Eye on Your Pension Investments<\/h3><\/span><\/div>
Take the time to think about where your money is invested. You may find this worrisome so don\u2019t be afraid to pick the default fund (if you do not exercise a specific option as provided, the selection would be made for you automatically) offered by your pension firm to start with. But the more interest you take in your pension, the more you are likely to get out of it.

\n\nAs seasoned investors know, the longer time-frame you\u2019ve invested, the great-er the risk you can afford to take, if things do go wrong; hence you have plenty of time to recover. It is therefore advisable to start saving for your retirement as early as you possibly can.

\n\nThe riskiest investment often offer the best potential rewards so it\u2019s a case of sitting down and deciding how much risk you\u2019re comfortable with. As you get older, it\u2019s wiser to take fewer risks with your savings as you want to know the cash will be there when you need it.\n<\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Take Advantage of Employer Contributions<\/h3><\/span><\/div>
The final key message thus is: If your employer offers you a contribution into your pension, take it, even if it means having to put money in yourself. This is free money, make use of this saving opportunity.\n<\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Summary<\/h3><\/span><\/div>
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Why You Should Seriously Consider a Pension<\/h3><\/span><\/div>
If someone offered you the chance to turn N$10 into N$100, would you be interested? Now imagine you only had to contribute N$8, because your employer added the remaining N$2 \u2014 all through a formal savings scheme. Sounds like a great deal, right?\n

\n\nThat deal is your pension \u2014 one of the smartest financial decisions you can make for your future.\n

\n\nA pension is more than just a paycheck after retirement. Its purpose is simple and vital:\n\n<\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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  • <\/span>To provide income when you retire<\/li>
  • <\/span>To protect you if you become disabled and can no longer work<\/li>
  • <\/span>To support your dependants if you pass away<\/li><\/ul><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    <\/h5><\/div>
    It\u2019s a long-term savings plan designed to give you financial independence when you stop working.<\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    Saving for Retirement Is Easier Than You Think<\/h5><\/div>
    Many people believe pensions are complicated or only for the wealthy. That\u2019s not true. Pensions come with tax advantages and, in many cases, employer contributions. If your employer offers a pension fund, joining it is in your best interest.\n

    \n\nIf you don\u2019t have access to a pension fund through your job, you can still take out a retirement annuity from an insurance company. The Government offers tax incentives to encourage people to save for retirement, reducing the future burden on state resources.\n

    \n\nImportant tip: <\/strong>\nWhen changing jobs, don\u2019t cash out your pension! Rather, transfer your savings to your new employer\u2019s fund or a preservation fund. This helps keep your retirement savings intact and growing.<\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    Why It\u2019s Critical to Start Early<\/h5><\/div>
    It may feel like retirement is a lifetime away \u2014 especially when you\u2019re young. But the sooner you start saving, the more your money can grow, thanks to the power of compounding.\n

    \n\nHere\u2019s an example using rough estimates:\n\n<\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    \n\t\t\t\n\t\t\t \n\t\t\t \n\t\t\t\t\t\t\t\t\t \n\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t \t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t \t\t\t\t\t\t\t\t\t\t\t
    \n\t\t\t\t\t\t\t\t\t\t\t\t\t\tAge Started<\/span><\/th>\n\t\t\t \t\t\t\t \n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tN$10 Grows To<\/span><\/th>\n\t\t\t \t\t\t\t <\/tr>\n\t\t\t <\/thead>\n\t\t\t \t
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    \n\t\t\t\t\t\t\t\t\t\t\t\t\t25\t\t\t\t\t\t\t\t\t\t\t\t<\/div><\/div>\n\t\t\t\t\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t \t\t\t\t\t\t\t\t\t\t\t
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    \n\t\t\t\t\t\t\t\t\t\t\t\t\t\tN$320\t\t\t\t\t\t\t\t\t\t\t\t<\/div><\/div>\n\t\t\t\t\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/tr>\n\t\t\t \t\t\t\t\t\t
    \n\t\t\t\t\t\t\t\t\t\t\t\t
    \n\t\t\t\t\t\t\t\t\t\t\t\t\t39\t\t\t\t\t\t\t\t\t\t\t\t<\/div><\/div>\n\t\t\t\t\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t \t\t\t\t\t\t\t\t\t\t\t
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    \n\t\t\t\t\t\t\t\t\t\t\t\t\tN$80\t\t\t\t\t\t\t\t\t\t\t\t<\/div><\/div>\n\t\t\t\t\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/tr>\n\t\t\t \t\t\t <\/tbody>\n\t\t\t<\/table>\n\t\t<\/div>\n\t \t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    <\/h5><\/div>
    This clearly shows how starting earlier can multiply your savings dramatically. Waiting too long means missing out on the growth your money could have achieved over time.<\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    <\/h5><\/div>
    Your pension savings don\u2019t just sit in a bank \u2014 they\u2019re invested to grow over time. It\u2019s important to know where your money is going. If you\u2019re unsure, you can start with the default investment option offered by your pension fund.\n

    \n\nAs a general rule:<\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    • <\/span>When you\u2019re younger, you can afford to take on more investment risk because there\u2019s time to recover from market fluctuations<\/li>
    • <\/span>As you get closer to retirement, it\u2019s better to reduce risk to protect your savings<\/li><\/ul><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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      <\/h5><\/div>
      Take interest in your pension performance. It\u2019s your money, and understanding how it's growing helps you make better financial decisions.\n

      \n\nIf your employer is offering to match your contributions, don\u2019t turn it down. That\u2019s free money toward your future. Even if it means putting in a small portion yourself, the long-term benefit far outweighs the short-term cost.\n

      \n\nSaving for retirement may not feel urgent today, but it\u2019s one of the most important financial steps you\u2019ll ever take. Whether you're starting with N$10 or N$1,000 \u2014 start now. The earlier you begin, the more secure and enjoyable your future will be.\n

      \n\nYour future self will thank you.<\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

      Why You Should Consider a Pension If you were offered the chance to turn N$10 into N$100, there\u2019s a good chance you\u2019d be interested. Then, if you were told you<\/p>\n","protected":false},"author":1,"featured_media":927,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_EventAllDay":false,"_EventTimezone":"","_EventStartDate":"","_EventEndDate":"","_EventStartDateUTC":"","_EventEndDateUTC":"","_EventShowMap":false,"_EventShowMapLink":false,"_EventURL":"","_EventCost":"","_EventCostDescription":"","_EventCurrencySymbol":"","_EventCurrencyCode":"","_EventCurrencyPosition":"","_EventDateTimeSeparator":"","_EventTimeRangeSeparator":"","_EventOrganizerID":[],"_EventVenueID":[],"_OrganizerEmail":"","_OrganizerPhone":"","_OrganizerWebsite":"","_VenueAddress":"","_VenueCity":"","_VenueCountry":"","_VenueProvince":"","_VenueState":"","_VenueZip":"","_VenuePhone":"","_VenueURL":"","_VenueStateProvince":"","_VenueLat":"","_VenueLng":"","_VenueShowMap":false,"_VenueShowMapLink":false,"footnotes":""},"categories":[426],"tags":[],"class_list":["post-926","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pension-funds"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/posts\/926","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/comments?post=926"}],"version-history":[{"count":9,"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/posts\/926\/revisions"}],"predecessor-version":[{"id":35744,"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/posts\/926\/revisions\/35744"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/media\/927"}],"wp:attachment":[{"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/media?parent=926"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/categories?post=926"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/tags?post=926"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}