Factoring time into retirement planning
We are living for longer — and our retirement investment strategies need to factor this in, writes Johann Barnard
Speaking to a fund manager or financial adviser about retirement savings invariably leaves one feeling inadequate. And there is no shortage of statistics to back up the build-up of unease. The National Treasury, for instance, says only 6% of South Africans will be able to retire comfortably. And according to the Sanlam Benchmark Survey of retirement funds, just 19% of members in standalone funds and 14% in umbrella funds can maintain their standard of living on retirement. One last number that shouldn’t come as a shock, but that really drives home the point, is that living to 100 or more is going to be a reality for a growing number of people. "I actually think [the situation] is much worse than what is generally perceived," says PSG Wealth’s chief investment officer, Adriaan Pask. "We have a massive pension gap in terms of what is required to retire comfortably and what investors are saving. "Our savings rate is way below what it ought to be, which is not a problem that is unique t...
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