We would all love to have a sizeable amount of money when we retire, but not all of us know how to go about it.

Saving for your retirement affords you the freedom to continue living the life you have chosen without relying on government provision.

With a retirement nest egg, you can continue paying your bills, travel, and even help raise your grandchildren – things that you cannot afford on a government pension.

Moneyshop spoke to Shreekanth Sing, technical legal adviser at PSG Wealth, about what you can do to increase your retirement savings.

Start early

Using the power of compound growth to boost your savings remains the most painless way to reach your retirement goal. But even if you have not started early, you can still aim to make up for it by maximising the other factors below.

Contribute more

Yes, you can, even given the current economic climate. Your contributions to retirement funds – including pension funds, provident funds, and retirement annuities are tax deductible. You qualify for tax deductions on retirement fund contributions of up to 27.5% of your taxable income or remuneration per year, to a maximum of R350,000.

Even though your take-home pay will decrease, it will not have that much impact if you aren’t responsible with your spending.

Invest for growth

It can be tempting to park your money in money market funds given the current market volatility and uncertainty.

However, it is important that your money beats inflation in the long run to preserve your purchasing power. Growth assets like equities or shares have historically outpaced inflation by a wide margin, despite short-term ups and downs.

Consider Tax-free savings accounts

You can contribute up to R33,000 in any tax year, and R500,000 over your lifetime, to a tax-free savings account. Unlike retirement fund contributions, your investment premium into a tax-free savings account is not tax deductible. However, just like a retirement product your growth in the investment – including interest, dividends, and capital gains – is tax free.

Having enough retirement funds allows you to retire comfortably and gives you the freedom to continue living the life that you want. Talk to a trusted financial adviser about the right retirement fund for you and start saving today.

This article has been prepared for information purposes only and it does not constitute legal, financial, or medical advice. The publication, journalist, and companies or individuals providing commentary cannot be held liable in any way. Readers are advised to seek legal, financial, or medical advice where appropriate.