Pre-Retirement Planning Guide and the Retirement Calculator

HEADING

Agenda

1.Overview: The RSA Retirement Industry

2.Pre-Retirement Planning Checklist

3.10X Pre-Retirement Planning Guide

Set a GoalConsider your SavingsInvestment PortfolioAm I on track?

Pre-Retirement Planning Guide & the Retirement Calculator

Agenda

•The South African Retirement industry amongst the largest in the world relative to GDP The total assets of the Private Sector Pension fund exceed R1 trillionR2.4 trillion in assets if GEPF is included. (RSA Treasury Discussion paper C)Yet the success rate in terms of individuals who retire comfortably is only about 10%.

•Does the industry really serve the members’ interests?

•As a member, do you have the right plan? 90% of retirement failures = NO plan or WRONG plan

10X Investments empowers member through education and planning tools.

The RSA Retirement Industry

As a member, where do you begin?Plan never to retire or use the 10X planning tools

Pre-retirement Checklist

www.10x.co.za

With the right plan= better outcome even if you can’t meet desired goal

Step 1: Set a goal

• If you were headed off on an journey you’d first need to know where you were going.

• Same with retirement, you must know how much you will need to live comfortably when you retire.

• As a minimum target, 10X recommends that your retirement income replaces 60% of your final paycheck, growing with inflation.

Step 2: Save as much as you can for as long as possible

How do you arrive safely? Keep your eyes on the road

•As the driver of your retirement plan, the safest way is to meet your retirement goal is to start early and save for as long as possible•There are variables you can control such as :-Lowering your retirement goal-Retiring later or saving more

How much is enough?

To reach you destination, you fill up regularly

•Likewise, the more money you save and the longer you save, the more likely you will reach your retirement goal.

•10X recommends that you save at least 15% of your salary for 40 years. That’s 15% of every paycheck-from your first to your last.

Increasing your investment period from 20 to 40 years, almost quadruples your final investment!

Go the extra mile!

•Unlike cars, investment becomes increasingly more valuable as they clock up miles. Calculation example:

•If you save R1000, for 40 years and receive a 5% return on your investment each year. You will have R1,5 million.

•Under the same conditions for only 20 years, you will have only R400 000.

Step 3: Your Investment vehicle should aim to maximize your retirement pot at retirement

Which investment vehicle is right for you?

•Cars may be different but their one fundamental function is ..transportation. •Question is, which one is designed right for the journey? Should you switch investment vehicles?At 10X your car is designed to provide you with the best chance of arriving safely at your retirement destination.

10X offers no confusing choices. The 10X Life-stage portfolios automatically invest your savings based on your age and expected retirement date.

Avoid unnecessary and punitive fines on your retirement journey

Why do fees matter?

•As part of any long journey, there will be unavoidable fees payable e.g toll fees. Fees also apply to your retirement.•The South African industry fees are on average 2.5% pa (plus VAT) of your retirement. Some of these fees are complex and not disclosed upfront.

•10X charges low fees at a maximum of 0.9% (plus VAT)

•Every 1% saving in fees increases your final investment value by 30%.

Step 4: Am I on track?

Step 4: Am I on track?

Receive you plan via email, print your plan and update next year

Thank you