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The harsh reality is that older, retired people are more at risk in the current environment – health-wise from Covid-19 and financially from the resultant financial developments. Unlike retirement annuity investors, who are buyers of shares, living annuity investors are sellers, and now they must sell low.
The global pandemic has highlighted the increased risk of death the elderly face if they contract COVID-19.
Today’s retirees - known as baby boomers born between 1946 and 1964 - are living their post-work years completely differently to previous generations of pensioners.
Government’s attempt in the recent budget speech to encourage South Africans to save more is welcomed. The annual investment limit in Tax Free Savings Accounts was increased from R33 000 to R36 000. However, this move is unlikely to spark any real change in South Africans’ savings behaviour.
If you had to hazard a guess, when do you reckon the COFI Bill will be signed into law?