Tag Archives: retirement

How prepared are you for retirement?

Online Money

This topic has become top of mind in the last few years. It is evident that most people are not putting enough away for retirement.

Living on less

Many financial planners will tell you that, in retirement, you’ll want roughly 80% of your pre-retirement income. But surveys indicate that today’s retirees are bringing in far less than that — about 66% of their pre-retirement income on average. Here’s where that money is coming from.

The bottom line is that all of us likely have a greater capacity to adapt and make retirement more enjoyable than we assume during our working years. That doesn’t mean we shouldn’t focus on saving for retirement, which obviously remains vital.

Instead, for those who are decades away from retirement, it is a better way of looking at this and ask how to apply it to your daily life right now. What types of wasteful spending could you eliminate from your life? What is your level of “enough”? If you were to eliminate all of your expenses and then only add back things that add value, what would you be left with?

The answers to these questions are equal parts philosophical and practical. The main goal is to help you live a more mindful life. But the key, as far as this article is concerned, is that answering these questions can help you save far more for retirement (and require less once you enter it).

Either way, this will help you avoid the anxieties brought on by retirement calculators and focus on living a more sustainable life both now and in retirement.

Share

Secure your future and save 15 percent of your income

KwaZulu-Natal MEC for Finance, Ina Cronje,, has encouraged individuals especially young people to save no less than 15 percent of their income.

“It is a indisputable fact that 75 percent of South Africans have insufficient retirement savings. The sad reality is that some people do not manage to retire at all and find themselves facing severe financial shortfalls once they reach retirement age, with far too little in the way of savings to maintain their lifestyle,” Cronje said.

She pointed out that the low rate of saving and the escalating debt of citizens with the hope of accomplishing their aspirations instantly have serious consequences not merely for the individual’s financial stability, but also for the provincial initiatives to achieve sustainable economic growth.

 

MEC for Finance Ina Cronje

 

The provincial government, via the Provincial Treasury, has prioritised educating citizens when it comes to practical ideas on how to manage their finances.

The initiative has seen the province asking players from both the financial services sector and the private sector to come to the table and play its role via the KZN Financial Literacy Association, championed by Cronje, in assisting individuals to make financially-sound choices.

“As a result of this association, the government and private sector are dealing with financial illiteracy head-on… this initiative involves several educational programmes targeting the citizenry, starting at school level, as a way to build a savings culture in the province.

“A savings culture needs to be inculcated in all the citizens, young and old, individuals simply cannot live like there is no tomorrow, we have to save for rainy days, a high savings rate would allow our province to fulfill investment requirements, causing us to be less reliant on volatile short-term capital inflows for funding, which can easily be reversed and pose risks of instability for an emerging economy like ours,” said Cronje.

She mentioned that although the country is officially out of the recession, its savings rate of 16 percent is significantly lower than that of other prosperous countries, even in Africa.

“KwaZulu-Natal’s economic growth of 3.13 percent in 2010 is worrisome indeed but given where we were a year ago there is an improvement, however it is not at the level where we would like it to be or even at a level where we are able to generate adequate and descent jobs.”

The national government a short while ago launched the National Savings Month (July), with the goal and objectives to encourage citizens to ‘save today; for themselves and their country.

Source: BuaNews

Share