Two-pot system

The two-pot retirement system that will come into effect on September 1 2024 will change the rules around saving for retirement and give you access to a portion of your retirement savings if you really need it without resigning from your job. It will also ensure that you save a larger portion to provide an income in retirement.

Watch and learn

Getting to grips with your finances and learning to manage them well takes a little bit of effort. You need to research topics, draw up plans and test financial scenarios. But you can eat the elephant one small bite at a time. Watching short videos gives you a quick entry into a topic when you don’t know much about it.

A good financial footing

Becoming adult is all about being able to make your own choices. And that includes making choices about your money - ones that will ensure you set off to climb to the peak on a good financial footing.

Settling down

When you decide it is time to set up your home and work life on a more permanent basis in one place, possibly with a life partner, it is likely to be the time you start incurring some big costs. A little planning can help with big expenses.

Mid-life

As you become more settled in your mid-working life years, your financial affairs can get more complicated. You may have a growing family, you may find yourself single with children. Where ever you are in life, some basic financial principles apply.

Your own small business

If you are self-employed or running your own business your personal finances will need a slightly different focus to that of an employee. As your own boss, you are responsible for funding your business, managing your income, tax and recreating the benefits that employees enjoy.

Getting financial advice

Financial advice can be worth every cent if you find a suitably qualified adviser who has your best interests at heart. Advice is regulated, so there should be more competent advisers out there, but you need to do your own due diligence before you can hire the right person.

Estate planning

Making a will, setting up a trust for minor children, ensuring your estate pays the least estate duty – every one can benefit from some estate planning.

Working with credit

When you are earning money, credit providers are eager to offer you credit and it is tempting to use it to buy things you cannot afford immediately. However, you should understand how each form of credit works and why you should use it sparingly.

Managing debt

When the credit you have taken out becomes unmanageable you have a debt problem. It may be one you can tackle and solve yourself, or you may need more drastic action, such as going into debt review. Either way, with the right attitude you can become debt free.

Investment basics

Investing is full of complexities, but fortunately you only have to master a few basics to get started and to earn good returns like a pro.

Getting to know your manager

It is a good idea to let an experienced professional who knows a lot more than you invest your money for you. But you need to know just enough to choose a good manager and what to expect from their investment approach.

Sustainable investing

Climate change and social problems are at the forefront of the news as they will define our futures. Investors who understand the sustainable investment trend have the opportunity to use their investments to make a difference.

Collective Investments Schemes

Investing in collective investment schemes (CIS), such as unit trusts and exchange traded funds, offers you a safe and easy way to access the financial markets. Once you know what collective investment schemes are and how they protect you, you can learn more in the sections below about unit trusts, exchange traded funds and hedge funds – from how to choose one for your investing needs to what they cost and how to analyse their performance.

Unit Trusts

Investors are spoilt for choice with more than 1700 unit trust funds available in South Africa. They offer you the potential to grow your wealth in line with the financial markets. Understanding a few basics will help you choose the right one for you.

Exchange Traded Funds

Exchange traded funds give you a fool-proof way to invest on the stock market. ETFs allow you to buy the market – or parts of it – by tracking indices. And to get the benefits of diversification that ETFs offer, you only have to buy a single, share. It is quick and easy to learn enough about these funds so that you can start a DIY or guided journey to building your wealth.

Hedge Funds

South African investors enjoyed a world-first when hedge funds were brought under collective investment scheme regulation and made accessible to ordinary investors. Adding a hedge funds to your investments should give you greater diversification as these investments aim to deliver returns when traditional share, bond and listed property markets do not.

Insuring your life

When you are fit and healthy, it is hard to imagine life any other way. But every one knows or has heard about some one taken young. And parents can’t afford to be without cover that will ensure their family grows up even if they are not there. Business owners too should think about whether they may need cover.

Disability Cover

What is your greatest asset? Your home or car? For most people it is your ability to earn an income, especially if you are young. Consider the value of all your future pay cheques wiped out by an accident or an illness that leaves you unable to work. Disability insurance can offer you some certainty in an uncertain world where your future earnings are at risk.

Income Protection

Protecting your income is essential if you support yourself or your family. Income protection pays your salary when you are unable to earn it. An ongoing income may be more suitable to match the income loss you would suffer if you could no longer work.

Severe Illness Cover

One in five people are likely to suffer a severe illness at some stage of their lives. Serious illnesses are a big stressors. A bit of extra protection that a policy can provide, can mitigate some of that stress.

Funeral Cover

The most widely held policy in South Africa is that which covers funerals. Policyholders who understand how they work are much harder to find, but this section can make you one of them.

Group Life Cover

Your employment package can be greatly enhanced if your employers offers good group life benefits. But to make the most of them, you need to know what questions to ask.

Credit Life Cover

Debt repayments may not be all you have to pay for when you buy on credit. Credit providers often insist you have life insurance. This cover can come into its own if death or disability leaves you unable to honour your debts, but while you are paying be sure you only pay what you need to.

Healthcare Cover

If you want to use private hospitals and doctors for your health care, it is best to provide for the costs. Joining a medical scheme will offer you the strongest safety net against extremely high, and potentially financially ruinous, costs you could face should you need critical treatment. Membership is costly and so understanding how to get the best from your cover is crucial. Health insurance products offer complimentary cover, and in some cases cheaper alternatives, but understanding the shortfalls is vital.

Getting to retirement

Retirement may seem a life time away when you start working, but the biggest favour you can do yourself is to make a start on your savings journey. If your retirement is now looming ever closer and you do not feel prepared, don't waste any more time before making plans. Whether you envisage a traditional retirement, or a period in which you "rewire" or "refire" after many working years ... the outcome is up to you.

At retirement

It's a change of pace. It's a time of choices. There are decisions to be made with big financial implications. Invest some time in getting to know what is involved so you can make these choices with the confidence.

Taxes we pay

Tax is a three-letter word that strikes fear into the hearts of many. It can be complicated, but most of us only need to get to grips with a few basics.

Empowering you to make good money decisions

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Tools and Calculators

Financial health check

Have you taken charge of your financial situation or do you tend to stick your head in the sand when it comes to managing your money?

Budget planner

Allocate your income wisely to cover all your living costs, insurance and contributions to your savings.

Debt repayment calculator

Find out how much interest – and how many months of repayments - you could save on your debt if you pay off a little extra every month.

Savings goal calculator

Work out how much you need to save to achieve your goals.

How much will my savings grow calculator

Work out how much your current savings will amount to with the help of compound interest over time.

Fund classification tool

Look up how your fund can invest or how funds in a category can invest.

Tax deductible retirement fund contributions calculator

Work out how much more you can contribute to your retirement fund in order to save on tax.

Living annuity drawdown calculator

Use this calculator to test if your savings invested in a living annuity will support the income or drawdown rate you want in retirement.

Retirement Annuity Calculator

Use this calculator to work out what your retirement savings will be worth by the time you retire and estimate how long those savings will be able to provide the pension you want in retirement.

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