Many people assume that by simply contributing to a retirement scheme, their nest egg will one day automatically hatch and take flight. However the truth is, the contributions being made may not be enough to accumulate sufficient wealth with which to retire what is known as a retirement savings gap.
Bridging the savings gap: As hard as you work, your money needs to work harder. If, like most people, you find that contributing to the retirement fund where you work might not be enough, there are ways to grow your capital before you retire: Make additional contributions and invest in a retirement annuity.
If you’re looking to boost your retirement capital, you may want to consider an option like a Retirement Annuity suitable for those who are self-employed as well. The underlying investments in the Retirement Annuity are unit trusts and costs are kept to a minimum. A retirement annuity (RA) allows you to grow your retirement savings in a tax efficient manner. RA contributions are tax deductible within certain limits.