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Individualisation is the next step in the evolution of defined contribution retirement funds and the key to a successful retirement, according to Alexander Forbes.
For many South Africans who were already finding it difficult to save for retirement, Covid-19 has created additional financial pressures which may take years to overcome.
South Africans need to contribute 17% of their income for 40 years to retire comfortably on 75% of their final pensionable salary – a 75% replacement ratio – according to the 2019 Alexander Forbes Member Watch.
Living annuities remain a popular option for investors at the point of retirement. However, with the income flexibility and the potential for market growth that living annuities bring, comes the responsibility of managing the inherent risks investors face.
If you had to hazard a guess, when do you reckon the COFI Bill will be signed into law?