Many South Africans are deeply in debt and have insufficient assets saved up for their retirement. Research indicates that only six percent of South Africans will be financially independent when they reach retirement age. And the rest?

Well, 47 percent will need help from family members, 31 percent will not be able to stop working and 16 percent will be dependent on government pensions.

And even people who think they have enough saved up don?t realise that they could spend about a third of their lives in retirement and will need sufficient resources to keep on paying the bills. This translates into a need for increased retirement savings at a time when many people are living from one monthly salary to the next and are ensnared in a trap of credit card and other debt.

That's why we answer five common questions about how to kickstart your savings...

1. What is the best way to build up savings?

   Putting a little money into a savings or investment account month after month is one of the best ways to painlessly build a nest egg. You can easily arrange for an investment fund to automatically debit your cheque account every month. Generally, the sooner you can start saving, and the longer you save, the more likely you are to build up a good investment portfolio.

2. Why should I save for retirement when I plan to work until I die?

   You may plan to work until you die, but life has a way of disrupting the best made plans and health problems or disabilities may prevent you from earning enough income.

3. When is a good time to start saving?

   As soon as possible ? the longer you wait, the harder it will be to accumulate and grow the resources you need.

4. How much should I be saving for retirement?

   It depends on your personal situation, although two important factors are your current age and the lifestyle you hope to lead when you stop working.

   As a general rule, financial experts say you should take at least ten percent of your annual pre-tax income and set it aside for retirement. If you reach age 50 and don?t have much of a nest egg, experts say you should begin putting away at least 20 percent of your pre-tax earnings for retirement to have even a hope of maintaining your current lifestyle. It?s best to take the advice of your personal financial advisor.

5. Where should I put my money when saving towards a nest egg?

   There is a wide choice of investment and deposit accounts available with different minimum investment amounts, earnings consistency and interest rates. You can choose to have easy access to all or some of your funds, the option of making additional deposits and withdrawals and varying investment periods.

   Some products require you to invest a larger amount than others. Choose the right investment according to the amount you have available, keeping in mind that the more you invest the more interest you are likely to earn.

   Different products offer varying degrees of access to your funds ? also known as liquidity. For example, some don?t allow you to withdraw any money for the full term of the investment. Others will restrict you to a certain number of withdrawals of a certain amount. Think about how likely it is that you will need some of the money before the investment term is up (say for an emergency) and decide on the accessibility you feel most comfortable with.

   Take into account your reason for investing ? for example, if you want to use the money in a year for the deposit on a major purchase like a house, it could make sense to invest it for the longest investment term possible even if it means delaying the purchase for a few months. Leave the initial amount invested as well as the interest you earn in the account for the full term so that you earn interest on the interest and receive a good lump sum at the end.