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#AskaFinancialPlanner: Limited budget, is insurance or retirement annuity most important?


Hi, I’ve been following the tips and advice by your expert financial planner. I am a school-leaver who has recently started my first job. I do not have budget for saving for retirement annuity as well as life and disability cover. Which one would you say should be my top priority? I do not have any dependents if that makes a difference. – Ryno


Hi Ryno, you are by no means the first and will not be the last individual who faces the problem of wondering where to start given the budget that usually accompanies your first job. The fact that you currently have no dependents makes for an easier decision.

This is why you need to budget for disability cover

In this case, I would like to propose the following thought process to assist you.

  • Have you purchased your first property or entered into a lease agreement to rent a property? – If so, I would put life cover and disability on the top of your list.
  • Are you around the age of 25? If so, not saving for retirement at this stage is not a crisis. I would however advise that you start within the next year. Put the retirement saving discussion on the agenda for your first annual increase.
  • Severe illness – Yes severe illness is important and a disease such as cancer could negatively impact your ability to earn an income, but given your probable age, it is the least important form of cover for you to consider at this stage. Again, consider it in the near future.

It is important to cover your immediate needs first. If you have not bought your first property yet, then saving for retirement would be a good start. Create the idea in your mind that you will be investing a small portion of your earnings towards yourself; regardless of whether it’s for your retirement or insuring yourself.

Got a pressing question? Email mariette@hometimes.co.za and we’ll be sure to assist

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Who is Donovan Kylle Beytell?

Donovan KB Money Wise

Donovan is a financial advisor at Money Wise Associated Financial Services who believes in challenging the status quo on how financial advice is currently delivered to clients. He takes pride in showing his clients that financial and other goals are attainable through appropriate planning and affordable solutions. Donovan has completed his Masters in the field of Financial Economics, Honours in Investment Management with distinction and Bachelors of Economics with distinction.





Disclaimer: The information above is not intended to be and does not constitute financial advice, investment advice, trading advice or any other advice or recommendation of any sort offered or endorsed by HomeTimes and Money Wise Associated Financial Services CC. Any expression of opinion is personal to the author and the author makes no guarantee of any sort regarding accuracy or completeness of any information or analysis supplied.


Mariette Steynberg is a qualified economist with a post-graduate diploma in financial planning. She has enjoyed working on holistic financial plans for clients in various stages of life, as well as a development economist assessing the socioeconomic impacts of new developments. When she is not working, Mariette enjoys parenting her quirky, delightful toddler girl. Cloth diapering, Eskimo kisses and the importance of reading to your child are all causes close to her heart. Mariette is passionate about financial education and hopes to use the experience she has gained to share knowledge with HomeTimes’ readership. Her goal is to provide information that is implementable by everyone.

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