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Retirement income planning

Retirement in the time of COVID-19: how to secure a sustainable income for life

MOONSTONE reports that the Coronavirus has shattered the myth that there is no place for the guaranteed annuities. Retirement in the time of COVID-19, which sees pensioners facing not only the risk of contracting the Coronavirus, but also the risk of not having an income that can sustain them for life due to the current environment that has seen investment markets crash, reducing retirement savings substantially. 

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.

Tax-efficient ways to save for retirement

Only 6% of South Africans will be able to retire comfortably, according to National Treasury. Further to this, the Just Retirement Insights survey conducted by Just SA estimates that there is a 22% shortfall between expectations and actual retirement provisions based on current annuity rates.

Flawed financial thinking revealed by Just retirement tracking study

Without an accurate understanding of your current financial situation and discussing your unique retirement needs, it is almost impossible to set realistic and achievable financial goals, let alone work towards them. The assistance of an independent adviser should not be restricted to high-income earners only and we strongly recommend that everyone approaching retirement compare product features and pricing of available retirement solutions with a trusted specialist, in order to make informed choices. This should also help to close the gap between the expectations and reality of retirement.

Should you expect to live to 100 and will your pension last that long?

Two critical retirement planning questions you need to make assumptions about are - how long will I live and how well will I live? We don't have the answers, but there is now more information on the possibilities and probabilities. We need to plan and save for how much income we will need in our later years when we stop working, but we don't know, with certainty, when we will die. So this critical financial planning still involves quite a bit of guesswork, but expert insights can help you avoid costly mistakes.

Five things you can do now to improve your money situation, and your life, in retirement

A guaranteed income for life and leaving an inheritance for loved ones are two of the most important motivators South Africans list when they reach their golden age. This is according to Just Retirement Insight – independent research commissioned by Just – in which South Africans between the ages of 55 and 85 years in the major metropolitan areas were interviewed. When it comes to income in retirement, 89% of survey respondents wanted a guaranteed income for life (up from 86% in Just’s 2015 survey).

Half of South African retirees plan to rely on their children if they run out of savings

Retirement income specialist Just has published a new survey focusing on the saving habits of South Africans, showing that a large number of people expect to rely on their children and grandchildren should they run out of retirement savings. The findings highlight the important role of careful planning to help make informed decisions around the effective use of limited resources.

You may be overestimating the retirement income you'll have

Many South Africans are not doing enough planning when it comes to retirement and think that their savings will generate a pension way beyond what their money can sustain. Annuity provider Just SA recently published its "2019 Retirement Insights" after interviewing more than 500 South Africans between the ages of 50 and 85

SA se aftree krisis

Bjorn Ladewig, Longevity Actuary at Just, joined the "Oggend op RSG" team in the studio to discuss the retirement income crisis facing South Africans [Audio]. 

The state of the South African retirement crisis

Recent research commissioned by Just about retirement income shows a worrying gap between people’s expectations and reality, but there are innovative solutions available to retirees.