6 powerful habits that will transform your retirement savings

WHETHER you are saving for retirement, a rainy day fund, or a future goal, the most important step is getting into the habit of saving.

- ANDILE JONAS

We hear so often that we are not saving enough for retirement. People also quote statistics such as that only 6% of South Africans can retire well. I have heard that this number was thumb sucked and that it gets repeated by an industry that does not really know how many people can retire comfortably.

What does well and comfortable mean anyway? This differs for every person. My financial adviser has worked out my savings goal for retirement by taking my current income and projecting it into my retirement years. He also worked out how inflation will erode my savings. This is to make sure that I will maintain my current lifestyle one day. Some people say you should save 17 percent to 30 percent of your income to be on the safe side.

What I do know is that you cannot go wrong with these six savings habits for your retirement:

1. Start early