Longevity means saving more wisely, too

Sylvia Walker, Market Development Manager at Old Mutual

It is common knowledge that we as South Africans do not save enough for retirement. This challenge is being compounded by the increased longevity in certain sectors of the population. According to research conducted by Old Mutual, almost 50% of women and

“An increasing life expectancy puts pressure on the nature and adequacy of your retirement provision,” says Sylvia Walker, Market Development Manager at Old Mutual. “Including growth assets in your post retirement investment plan is becoming a must.”

Apart from having to save for a longer retirement, 23% - nearly a quarter - of South Africa’s working population now falls into the so-called Sandwich Generation, the generation of people squeezed between their own children and their ageing parents, and supporting both of them.

Walker says this that being ‘sandwiched’ can place enormous pressure on hard-pressed breadwinners during their pre-tirement years, the years before they retire, during which they should be providing for their retirement.

Furthermore, it is widely accepted that the world has entered a lower growth environment. This means that returns will typically be lower than the previous bull market. Start early, and save more in order to make up for generally lower anticipated returns.

Those of us in the pre-tirement category should be encouraged to adopt a careful and collaborative approach to financial planning, taking a generational view of the whole family’s needs, explains Walker.

“Work with competent financial advisers to establish your current financial situation, ascertain which additional financial obligations you may be responsible for in the future and make wise, objective decisions and informed choices.”

Enlisting professionals to help you formulate a realistic achievable financial plan today will bring you real peace of mind and financial security tomorrow.