Tough decade lies ahead for pensioners
Asset managers warn retirees that returns will be below average
The decade ahead will be the most difficult yet for South African pensioners drawing an income from their investments, asset managers told independent financial advisers at a conference this week. Returns would be below average for the next 10 years and retirees had never experienced this before, Lourens Coetzee, an investment professional at Marriott, told South African Independent Financial Advisers Association conferences that were held around the country. He said low economic growth and the high debt-to-GDP ratio would result in returns being lower than they had been historically, and most probably below inflation plus 5.8%. Bernard van Wyk, an investment consultant at Analytics, told the conferences there was a very high probability of lower returns in the decade ahead. He is expecting the multi-asset funds typically used by investors drawing an income from a living annuity to deliver returns two to three percentage points below what they have delivered over the past 17 years. ...
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