Longevity

World Alzheimer's Day on 21 September marks a good opportunity to think about the future and how to plan for the potential challenges of Alzheimer’s in retirement while you, or your loved ones, still can.

Those from poorer backgrounds tend to have a shorter lifespan than those who are wealthier. People have a right to purchase a life annuity at a price that fairly reflects their individual risk.

While life insurance policies use medical underwriting to charge those who are ill a higher premium, life annuities use underwriting as a fair way of ensuring you get the right income, for life.

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.

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.

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.

Fin24 covers some of the findings from the 2019 "Just Retirement Insights" study. CEO Deane Moore says: "Our key concern rising from this latest study 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."

Most South Africans rate their health as very good or above average, but underestimate their life expectancy.

Retirees need to plan proactively for living longer – and the possibility of reduced mental capacity.

Dementia can creep up by stealth and rob you of your financial security in retirement. Here’s how to protect your retirement income should you face cognitive decline.