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While the widening gap between expectations and the financial realities of life in retirement is an issue that faces people across the globe, the situation appears to be particularly dire for South Africans. This is according to the Schroders Global Investor Study 2018, a survey conducted by global asset management firm, Schroders, of over 22,000 wealth investors* across 30 countries[1].
Compound interest has been called the eighth wonder of the world, and with good reason. The power that this seemingly boring financial concept has to grow your money is nothing short of magical.
German pension actuaries grappling with the far-reaching implications of pension fund reform legislation introduced by their country earlier this year have turned to a practical retirement income framework authored by two South Africans for solutions.
Markets are volatile. Late last year, Steinhoff’s demise destroyed billions in shareholder value when its share price dropped by 90%. Can you afford to be exposed to highly volatile markets in retirement when you are dependent on that same investment vehicle to provide you with stable income?
If you had to hazard a guess, when do you reckon the COFI Bill will be signed into law?