Do you have enough money to retire on?

Does anybody really have enough retirement income?

Okay, the really rich, but for most people today, there will definitely be a cutting back after retirement.

And that’s the crux. If you are used to living a certain way, it is not easy to change your patterns when you stop working.

A combination of the new Liberty Life ad and an excellent presentation to Accsys clients and staff by Professor Jackie Arendse, got me thinking.

Liberty says that the average monthly earner receives 480 payslips in their lives. If you retire at 60 and live until 85, you will have 300 months when you don’t earn a salary! That is a frightening thought.

When you consider that the average age keeps rising, and retirement ages have not been increasing at the same pace, planning for retirement becomes more critical than ever.

Rumour has it that the first person to live to 150 has already been born. What do you think her retirement age will be?

Retirement Reform

No wonder the government have looked at Retirement Reform (definitely capitalised).

Supposed to kick in from March, 2015, it now appears to have a “go live” date of March, 2016.

Unfortunately, reaction has been less than positive.

There has been a noticeable increase in resignations from people who have decided to realise their retirement income as there are fears that the money will disappear.

Feedback from Provident Fund contributors is also less than enthusiastic. The move towards annuitisation, partial or full, has not been generally well received.

Will you be 55 by March 1^st, 2016?

This is the first time that I have heard people feeling delighted that they are going to be 55 by March, 2016, the reason being that they stay on the existing model.

Two of the major issues the government is trying to address?

1. Fast erosion of lump sum payments at retirement

2. Resignations in order to receive retirement income

Worthy goals.

Like most people getting closer to the 480th payment, I wish I had done more to provide for retirement.

I have some questions

Will the government moving provident funds closer to a pension structure make the difference?

What about the companies who do not offer Provident or Pension funds? We see high numbers of job applicants who receive no benefits.

Do the Life Skills classes at school and tertiary institutions cover saving for the future in enough detail?

How many of us have received our financial advice from somebody who stands to gain from the transaction?

We need more objective education and information earlier. Nothing we do will change everything, but it would be a great start….

Links, References and Notes

Business Connexion:Accsys
email: tschroenn@accsys.co.za
twitter: @TerylSchroenn

Note

Thank you for reading Teryl@Work. Should you wish to use any of the material, please acknowledge this blog as the source

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