Increased global longevity is giving us more years of active health and possibly a longer retirement. But within current economic and political constraints, how can South Africans approaching retirement make these extra years count for more than just ‘bought time’?
Retirement income planning
Retirement planning: Save money sensibly and it could save you
Not all young earners fully understand retirement solutions to make informed savings decisions for their future pension. It is common for more specific, short-term savings goals such as holidays, houses or hobbies to take priority over distant, less-defined objectives such as retirement planning. But faced with increasing longevity and a more active lifestyle during the golden years, this Savings Month Bonolo Mosoane says all South Africans should rather question if they can afford not to save for retirement.
Blended annuities – just right for your retirement income needs?
One way to better manage the higher risk of living annuities and the rigidity of guaranteed annuities is to use a blended annuity, a retirement income product that has the best of both in one.
This article first appeared on TAKE CHARGE OF YOUR MONEY
The changing role of beneficiaries
Think about shifting the conversation around the role of beneficiaries in retirement planning. Instead of focusing on leaving money to beneficiaries, rather propose involving those would-be beneficiaries in the decision-making stages of retirement planning. This should help mitigate any unforeseen changes in their role as a beneficiary to that of a provider.
This article was first published in MONEY MARKETING
Should You Consider Living In A Retirement Village?
How do you weigh up the pros and cons and make a balanced decision on whether a retirement village is the right move for you? The role and requirements of the 'retirement village' are constantly changing with many establishments modernising their facilities to support the needs of their residents. Do your homework, draw up a realistic budget and most importantly chat to your financial adviser so you're well informed to make the right decision for you and your family/support system.
The importance of a robust retirement plan
Now is a good time for retirees to secure a guaranteed income for life. According to retirement income specialist Just, if your retirement savings were invested in balanced funds through the market turmoil of 2020, it is currently possible to secure a guaranteed income for life that is more than 15% higher than it would have been had you invested on 1 January last year.
This article was adapted for MOONSTONE by Janine Geldenhuys.
Rebound for Retirement
If your retirement savings were invested in balanced funds through the market turmoil of 2020, there is some good news. You can currently secure a guaranteed income for life that is over 15% higher than it would have been had you invested on 1 January 2020 before the market crash; an income that targets growth in line with inflation.
Impact of lower salary increases on retirement savings
This MOONSTONE article is adapted from a recent article by Product Actuary Twane Wessels. She says salary increases have been trending downwards for several years, and the COVID-19 pandemic has further added to the negative growth as many South Africans experienced wage freezes and zero increases. The lower your increases, the lower your contributions to your retirement fund will be, and the less money you have invested to capitalise on any investment growth.
Lower salary increases mean less retirement savings
What effect can a zero percent increase have on your retirement savings? As contributions to employer pension or provident schemes are based on a percentage of your salary, the answer is clear. The lower your increases, the lower your contributions to your retirement fund will be, as well as the amount of your employer’s contribution. And the less money you have invested to capitalise on any investment growth. This article also appeared in COVER and FA NEWS.
COVID-19 has led to increased risk aversion among retirees
People are still concerned about the risk that they will live longer than they have anticipated and outlast their savings, says a MONEYWEB article featuring insights from Just SA CEO Deane Moore.
The article covers content shared at the recent 50plus-skills webinar on mental, physical and nutritional health for the 50+ community, proudly sponsored by Just SA. We also shared some results from our 2020 Just Retirement Insights, together with some practical steps to take to secure at least a portion of your retirement income.
Investing post-retirement: Not an ‘either-or’ proposition
We all tend to live in an ‘either-or’ world where we think we need to choose between two, often opposing, things or outcomes. Peanut butter or jam? Red or white wine? For simple things, this way of making decisions can work. But for more complex issues, such as investing your retirement savings, the either-or equation is too simplistic. Pricing Actuary Ryan Hultzer explains how retirement income annuities have evolved and no longer requires an either-or decision.
How to manage your retirement funds in uncertain times
With lacklustre local stock returns, questions about the creditworthiness of government debt and record-high offshore markets, those close to retirement may be left with daunting choices. Amanda Visser spoke to retirement specialists on behalf of FINWEEK about the options. [Subscription required]