Newsletter • Quarter 4 • 2024
PAY BACK YOUR SAVINGS POT WITHDRAWALS
Withdrawing from your savings pot should be reserved only for extreme financial emergencies.
- For example, new clothing is not a financial emergency. But having to dip into your savings pot to pay for a life-saving operation can be considered an emergency.
- Make sure you withdraw only what you really need, and not a rand more.
- Always speak to a certified financial planner and make sure that you are making the right decisions.
- Withdrawing money from your retirement savings has a negative impact on the amount of money that you and your family will have when you retire.
- Every month, you and your employer contribute to your retirement fund. This money grows over time. By adding to your savings every month, you build more money for your retirement.
If you made withdrawals from your savings pot, make additional voluntary contributions (AVCs) to pay the money back.
- These Additional Voluntary Contributions will significantly boost your retirement savings.
- Don’t forget the power of compound interest – where your savings earn interest and that interest then earns interest.
- The more you save now, the more monthly income you and your family will have to live on when you retire.
- You will also have more in your savings pot in case you ever need it.
What are the different ways of making additional voluntary contributions (AVCs)?
- You can contribute a percentage of your salary permanently or for a specific time period.
- Alternatively, you can contribute a one-off lump sum.
- Your additional contributions will be split – one-third into your savings pot and two-thirds into your retirement pot.
MAKE ADDITIONAL VOLUNTARY CONTRIBUTIONS.
Your future Self will thank you.
Save for your future
Make additional voluntary contributions to add to your retirement fund savings. Simply complete this Additional Voluntary Contribution Form.