With the cost of living constantly increasing, it’s very tempting to increase your drawdown rate when your anniversary rolls around. However, this can be very detrimental to your overall financial well-being. Read more on EBnet
The long and short of longevity: a woman’s perspective
Just's Twane Wessels and retirement specialists Lynda Smith (50 Plus Skills) and Jennifer Nedzamba CFP® (Netto Invest) agree that many women have not yet grasped the concept of longevity fully, and as a result have not planned adequately for retirement. In light of their shared experiences and expertise, and to help create awareness, they offer their top considerations for women approaching retirement.
Don’t rush investment decisions in times of uncertainty
It’s natural to feel a certain amount of panic during any crisis, let alone a global pandemic. But rushing into investment decisions through panic is always a bad idea, even if your nervous system is screaming at you to act. Click to read the full article by Bjorn Ladewig, Longevity Actuary at Just.
When I'm Sixty Four
When you hit retirement age, no one expects you to be your own doctor, mechanic or accountant. So why do so many of us assume that becoming a retiree automatically qualifies us to make the best decisions about the management of our retirement income?
Change your living annuity, not your drawdown rate
Life annuity sales soar amid lockdown losses
Amid the market instability brought on by COVID-19, retirement income specialist Just has reported record demand for life annuity solutions from South African pensioners looking to lock in an income for life. Sales for life annuities have doubled relative to 2019 since the COVID-19 market crash in mid-March 2020. CEO Deane Moore attributes this growth to attractive annuity rates and pensioners seeking to de-risk their retirement income in an unpredictable financial climate.
Lockdown learnings for retirement
A volatile financial climate has seen many South African pensioners in living annuities looking to increase their withdrawals to cover current cash shortages. However, retirement income specialist Just advises strongly against this, recommending instead that they find ways to trim their spending, or else they run the risk of their money drying up sooner.
How to sustain your pre-crash retirement income
Life annuity rates have increased by 10-15% since the beginning of the year, which offsets the reduction in market values most people in or close to retirement have experienced in the recent market crash. In other words, you’re currently able to get a higher income from each Rand of your retirement capital if you invest it in a life annuity today than you were three months ago – in fact 10-15% higher. However, this window of opportunity won’t last forever.
Does your retirement solution withstand the volatility test?
Risk management in retirement is key to helping a pensioner sustain income for life – to cover their essential expenditure and to draw more in the early years when they are more active. The COVID-19 market crash is exposing some shortcomings of outdated risk management strategies that have relied purely on investment tools to tackle all risks in retirement. Many pensioners invested in old-style living annuities are seeing their drawdown rates rise and are consuming capital that won’t be there to benefit from any future market recovery.
Retirement in the time of COVID-19
The global pandemic has highlighted the increased risk of death the elderly face if they contract COVID-19. Fortunately, the majority who contract the virus will survive. However they will face another wholly unpalatable risk – the risk of not having a sustainable income for life in an environment where investment markets have crashed, and retirement savings have been significantly reduced.
Financially independent parents on the wish list this festive season
The gift of a financial legacy for loved ones has long been a priority for South African retirees when considering their retirement income options – the idea of leaving some financial support to their heirs after death. According to retirement income specialist Just, this is still the case. In their 2019 Retirement Insights study, 80% of pre-retirees and retirees have a desire to leave money for their children and grandchildren. However, the bleak reality is that many South African retirees simply have not saved enough to allow for a secure, regular income to last their full retirement years, let alone leave a legacy for children, says Just CEO Deane Moore.
Just Retirement Insights 2019
The third tracking study of a series, Just Retirement Insights 2019 aims to understand the South African retirement market and their retirement needs in a changing economic and political climate. “Our key concern rising from this latest study,” said Just CEO Deane Moore, “is the high proportion of people approaching retirement who have not saved enough, yet expect an unrealistically high level of income from their existing retirement pot.”
Do you need more information?
Consider seeking advice from a qualified financial adviser. Contact us to request the details of an adviser in your area or to find out more about our offering.