The earlier you start to save for retirement, the more comfortable you will potentially be at retirement.
The reality is, however, that when most people start worrying about retirement, it is often far too late to do anything about it.
One way of building a nest-egg for your retirement is by contributing towards a retirement fund.
What is a retirement fund?
A retirement fund is a fund comprising the net contributions of the employer (company you work for) and the employee (you) over your working years, together with investment returns thereon.
However, not all retirement funds require employer contributions.
Depending on the type of retirement fund, these contributions can be made monthly with a view to provide you with a monthly income when you retire. Retirement funds are registered with the Financial Sector Conduct Authority (FSCA).
There are four types of retirement funds that you can invest in while you are still working:
* Pension fund
* Provident fund
* Retirement annuities
* Preservation funds