Statistics show that only six percent of South Africans will be financially independent when they retire. This is purely because of a lack of planning and because of people not saving enough for their retirement.

Research shows that the standard pension fund will not be sufficient to financially sustain the member upon retirement. More money should therefore be invested for one’s retirement.

Starting early is better. You'll give your retirement funds more time to grow and hedge your savings against future upsets. One study found that six out of 10 people in their 50s and 60s experience a job loss, illness or other income-shattering calamity. (See "The hidden threats to your nest egg.")

Saving for your retirement

Preparing in advance and contributing sufficiently toward your pension is vital. It is never too early to start saving and you should review your status every few years to make sure your retirement plans are on track.

A number of contributing components make up a good financial plan. Olemera's Financial Planning Process will put you in an informed position to plan all your current and future financial requirements.

Understanding your needs and planning accordingly is an essential part of successful financial planning. MSN Money's estimator of life insurance needs can help you decide how much coverage you should have. (Also see the video "A lifetime of life insurance.")

For a complete personal needs analysis and financial planning assistance, contact one of our Financial Planners or adviser. 

Retirement planning within the context of wealth creation refers to the long-term process of planning for your retirement while you are still earning.

This process includes a highly structured approach to your retirement needs and the formulation of a personalised plan to achieve your retirement goals.

In addition, it includes a focus on retirement fund management, to ensure that you make the right decisions with your retirement investments.

The success of the retirement planning process depends on regular review, specialist advice backed by a solid knowledge of the applicable legislation and tax implications, and a long-term relationship with a retirement planning specialist.

Start today

Be realistic about your retirement needs and set a goal. Experts recommend you sock away at least 10% of your gross income each year for retirement. Retirees generally need at least 75% of their previous income to continue their standard of living (more if they want to travel or indulge expensive hobbies).

Take advantage of your workplace plan and save at least enough to get the full match from your employer. Don't be tempted to withdraw your money before age 60.

• A factor which is often forgotten is , how long should one plan for post retirement. With medical technology the chances for surviving longer than expected may well cause your funds to run out, while you still have a few years to still live. The Life Expectancy Calculator can be used to give you some indication. It is recommended that you add at least 5 (five) years to the figure you get.

•  Use retirement-planning calculator to calculate how much you would need to put away to reach your objective. 

• Pay off your credit cards. (See "Your 30s: Now's the time to get ahead.")

• Reduce your spending to 60% of your gross income to build savings and retirement funds. (See "A simpler way to save: The 60% solution.")

Don't neglect the details

Once you've begun growing your retirement money, take stock of your investments every year.

• Do you have the right asset allocation for your age, income expectations and risk tolerance? Adjust accordingly. Don't put all of your money in one basket.

• Prepare for the inevitable: Make a list of your assets, including shares, employer retirement plans, bank accounts and life insurance, and make sure it's easily found in case you die.

• Keep your list of beneficiaries up to date.

• Have a durable power of attorney for health care and finances, a traditional will and a living will. (See "3 legal papers you shouldn't live without.")

You can see it from here

When you hit your 60s, focus on the reality of retirement. (See "12 steps you must take at age 60.")

• Set a date. Then you can realistically figure out if you have the money to make it happen.

• Decide where you want to live. It's a huge factor in determining how much money you will need. (See "To cut costs, move to small-town USA.")

• Research long-term-care insurance.

• Prepare a budget, including a healthy chunk for medical expenses. Use MSN Money's Retirement Expense Calculator.

• Consider using some of your assets to purchase an annuity or longevity insurance to guarantee a monthly check for life.

• Get professional advice from a fee-only financial planner committed to a fiduciary standard. (See "Can you trust your financial adviser?")

Don't panic -- you still have options

What if you're short of your goal? (See "Enjoy a low-cost retirement.")

• Downsize to a less expensive residence.

• Borrow the equity in your home with a reverse mortgage. (See "Lenders cut off the home equity tap")

• Keep working -- if you are able. After age 65, 38% of men and 42% of women have some sort of disability.