Residents urged to be savvy for retirement
JOBURG - Many people fail to plan financially for their retirement.
“Managing your finances in retirement is critical in today’s ever changing environment,” said Deon Nel, head of financial consultancy at Standard Bank. Nel stressed the importance of not just saving for retirement, but also being savvy on how the money is spent during retirement.
He added that, today, people were living much longer. “One hundred years ago individuals would retire at 65 and die a few years later, [but] now we are living much longer and could easily live to 80 or 90,” he said.
“This presents a challenge of saving enough cash for the next 15-25 years of our lives.”
Nel also touched on the impact retirement had on financial circumstances, adding that one faced the prospect of not earning a salary and an increase in medical expenses.
It is for this reason that Nel stressed that people needed to review their retirement plans to ensure that any shortfalls were addressed ahead of time.
“Take the time now to sit with a financial advisor to review any retirement goals and whether you are on track to achieving them. If not, then there is time and the opportunity to make the necessary adjustments,” he cautioned.
He said using money wisely during retirement included drawing up a budget for expected income and expenses, and taking a systematic approach to finding savings.
Nel concluded by advising consumers approaching retirement to review the performances of their savings and investments, and not to be too conservative when investing.
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