Ask anyone in formal employment who is within 15 years of retirement about their biggest asset. Their likely responses are "my house", "my farm", or perhaps even "my car". Yet, few realise that banks and finance houses often hold a larger stake in these assets than the registered owners.
The savvy might answer, “my savings and pension money”, and the exceptionally astute may add, “my ability to earn an income”. These individuals, often with guidance from a competent financial advisor, understand the importance of ensuring this invaluable asset through their retirement planning journey.
In today's environment, the pressure on retirement funds is significant due to extended lifespans. This is a key factor that everyone planning for retirement should be aware of.
Income comes from only two sources: people at work or money at work.
Upon retirement, you effectively become employed by the capital you've built up over your working life. Just as you wouldn't want to work for an employer with cashflow problems and the constant threat of bankruptcy, you wouldn't want your retirement capital to be insufficient to provide financial security and well-being for the rest of your life.
According to the 2023 Retirement Reality Report by 10X Investments, based on the Brand Atlas Survey, South Africa faces a significant challenge in retirement preparedness.
This story is from the October 22, 2024 edition of The Citizen.
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This story is from the October 22, 2024 edition of The Citizen.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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