Be aware of all your options to protect your financial security
14 February 2022 - 15:24
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It’s important to be aware of the dangers of personal preconceptions of what is required for retirement. Values shift over time and it’s critical to stay in touch not only with the world as it was, but also the world as it is and could be. So says Stephan le Roux, a registered financial planning coach at Old Mutual Wealth.
The Living Annuities Survey compiled by the Association for Savings and Investment South Africa (Asisa) has found living annuity policyholders managed to keep the average drawdown rate practically unchanged at about 6.6% pre-pandemic. But Le Roux says the steep rise in the cost of living in SA could have a big impact on this, with many people already drawing the maximum allowed percentage of 17.5%.
It’s important to be clear on when guaranteed income makes more sense than living annuities as financial security in retirement matters more than ever. Read more about this issue and others affecting your retirement funding decisions.
Browse through the pages below (zoom in or go full screen for ease of reading):
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
FREE TO READ | Retirement fund investments
Be aware of all your options to protect your financial security
It’s important to be aware of the dangers of personal preconceptions of what is required for retirement. Values shift over time and it’s critical to stay in touch not only with the world as it was, but also the world as it is and could be. So says Stephan le Roux, a registered financial planning coach at Old Mutual Wealth.
The Living Annuities Survey compiled by the Association for Savings and Investment South Africa (Asisa) has found living annuity policyholders managed to keep the average drawdown rate practically unchanged at about 6.6% pre-pandemic. But Le Roux says the steep rise in the cost of living in SA could have a big impact on this, with many people already drawing the maximum allowed percentage of 17.5%.
It’s important to be clear on when guaranteed income makes more sense than living annuities as financial security in retirement matters more than ever. Read more about this issue and others affecting your retirement funding decisions.
Browse through the pages below (zoom in or go full screen for ease of reading):
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