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
Retirement income planning
A woman’s perspective on longevity
Product Actuary Twané Wessels says that women underestimate their longevity, with research highlighting a disparity of 5-7 years between actual versus expected life expectancy. What’s more, despite the probability of living longer and outliving their male counterparts, fewer females tend to do adequate financial planning to ensure a comfortable and sustainable retirement. Read the full article on IOL PERSONAL FINANCE
What to look for in an annuity product
Just SA’s Bjorn Ladewig discusses choosing an annuity product at retirement with Simon Brown on MONEYWEBNOW [Audio at 13m30s]
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.
Life stages and life spans are changing – Financial Adviser has critical role to play
MOONSTONE reports that while the COVID-19 crisis initially provoked anxiety, Just CEO, Deane Moore reaffirmed that a retiree’s approach to retirement should remain the same, regardless of market conditions. When planning for retirement, he urged participants to think about their retirement savings in two parts – needs and wants. He then identified three sensible steps to follow to best manage and protect retirement income.
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?
The long-lingering ghosts for pensioners of the Covid-19 virus and the kleptocracy regime
Bruce Cameron says "The ghosts of the latest [market] events are going to be long-lasting. Investment markets are going to be volatile. You can expect increases in taxes, you can expect inflation or deflation and you can expect less income in the years ahead. It is best to take action now." Read the full DAILY MAVERICK article.
How to manage your living annuity in uncertain times
"If you cannot draw a reasonable level of income, you take on increased longevity risk and investment risk, and therefore increased risk of failure in a living annuity investment. In this case, it’s worth considering transferring some or all of the risk to an insurer by purchasing a guaranteed annuity," says Shaun Duddy, Senior Manager in Product Development at Allan Gray in PERSONAL FINANCE
About to retire? Take great care
The next DAILY MAVERICK op-ed by Bruce Cameron says by adding five years to your working life, you can improve your retirement savings by about 20-30% and reduce the time you will spend living off your savings. Just CEO Deane Moore provides an example of how delaying retirement can help you.
Hybrid annuities: Retirement fund defaults may be the cheaper options
Bruce Cameron's latest DAILY MAVERICK op-ed says: "Those retirement funds offering default annuities, which include the hybrid option, are probably offering you the best retirement option, particularly if you have not saved enough for retirement."
Hybrid annuities: Some of the choices
“This [a blended living annuity] provides the best of both worlds allowing for the important aspects of the living annuity, with its legacy, income flexibility and market participation; and the with-profit annuity with its income security that ensures your income if you die, even well into the future” says John Anderson, head of research at Alexander Forbes in Bruce Cameron's most recent DAILY MAVERICK op-ed.