FANews
FANews
RELATED CATEGORIES
Category Retirement
SUB CATEGORIES Annuties |  General |  Savings & Investments | 

2050: A bleak place for SA’s young adults?

10 September 2010 Sanlam

Initiative launched on Facebook to raise awareness of looming financial crisis

The average 30-year-old South African earns R12,100 k* a month. And unless they save 15% of it annually, they will not have enough money to live on by the time they are in their 70s. Given that very few young people are actively saving towards retirement, a very bleak future could well await them. This sobering reality is the catalyst for a new awarenessinitiative from Sanlam entitled, 'Save Your Future’. Intending to spur South Africans aged 20 to 35 years into taking ownership of their futures, the initiative highlights the necessity of saving enough money to thrive in 2050 and beyond.

Viresh Maharaj (27), Group Risk Actuary for Sanlam Employee Benefits says, "The situation is highly concerning as most young adults do not have retirement intheir sights until it is far too late to start making a real difference. As an established financial institution with a responsibility towards South Africans’ futures, we are fully aware that long-term planningis not high on the priority list of young people and so have launched the 'Save Your Future' campaign to address the situation and change the way young people see the future."

Sanlam has created a virtual world set in 2050 in which two of South Africa’s most popular celebrities - globetrotter Jeannie D andR’nB superstarLoyiso Bala - both aged by 40 years with the help of make-up and special effects, go about their day-to-day lives onFacebook. But their lives have a number of significant differences in 2050: they are faced with extreme climate change, critical resource shortages, over-population and medical and technological breakthroughs. The elderly pair is also confronted with expenses they hadn't anticipated in their youth: stem cell research for fractured hips,skyburb living to escape the over-crowding in down-town citycentres and trips aboard Virgin Galactic to see loved-ones when their4D hologramunit is broken at home.

"Using an interactive platform such asFacebook we hope toengage followers. Where the intrigue comes in that one of the celebrities planned adequately for their retirement during their heyday while the other didn’t and is feeling the pinch. We hope by doing so, followers will get a real taste of what could come their way in 2050 - good and bad," says Maharaj.

And, while some may think 2050 sounds light years away, in just 40 years South Africa can expect to see radical shifts in its infrastructure, development, education and health standards and global compliance with both living green and blue - all of which will have a significant impact on the individual’s wallet, particularly the elderly person who hadn't planned adequately towards their retirement while they still were employed, agile and able to make a difference.

Professor Andre Roux, Director of the Institute for Futures Research says, "Climate change and rising sea levels are likely to alter the slope of our coastlines, necessitating relocation. Technology is already changing the world of work. In 40 year’s time what we now call the ‘informal sector’ might be the rule, not the exception. And as we already observe in parts of Europe, ‘old age’ is becoming a third phase in life – possibly for as long as three decades. Planning for these very real possibilities is no longer an incidental nice-to-have; it should be seen as an imperative, a life-or-death necessity.

The initiative’sroots lie in the findings from the annual Sanlam Benchmark Survey, which found that survival alone is the priority among today’s pensioners as one in four say they cannot live on their savings and more than a third cannot afford any of theirmedical expenses.

"Too many pensioners today are living a sobering reality that is tainted by a lack of financial planning when they were young. So, unlessyoung adults start actively doing something about their futures, they could end up in a similar fate where they don’t have enough money to buy food, afford medical bills, see friends and family or even stay in-touch with the world around them – all while grappling with an ever-changing world that will no doubt put additional pressure on day-to-day expenses and living for young and old," concludes Maharaj.

To follow the campaign onFacebook visit http://www.saveyourfuture.co.za/.

Quick Polls

QUESTION

What do you consider the most significant challenge in implementing the Two-Pot Retirement System?

ANSWER

Coping with new, unfinalised legislation, leading to uncertainty in implementation
Adapting to brand new claim types, requiring the development of digital, member-initiated claims capabilities
Addressing member education and awareness to correct misconceptions and ensure understanding of the system, including tax implications
All of the above
fanews magazine
FAnews June 2024 Get the latest issue of FAnews

This month's headlines

Understanding prescription in claims for professional negligence
Climate change… the single biggest risk facing insurers
Insuring the unpredictable: 2024 global election risks
Financial advice crucial as clients’ Life policy premiums rise sharply
Guiding clients through the Two-Pot Retirement System
There is diversification, and true diversification – choose wisely
Decoding the shift in investment patterns
Subscribe now