BUSINESS MAVERICK: Most South Africans will face a bleak reality when their working lives come to an end

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BUSINESS MAVERICK: Most South Africans will face a bleak reality when their working lives come to an end By Ruan Jooste duritz79

A key issue that crops up often in retirement research is mounting financial pressure, which is preventing people from saving enough or at all for their golden years. Findings aligned very closely with a widely quoted National Treasury statement that only 6% of the country’s population was on track to retire comfortably.

In 2019, a total of 67% of respondents in the Brand Atlas survey indicated they had no retirement plan, or just a vague idea of one, 8% more than the number reported in 2018. More than half of those survey respondents who had some sort of a retirement plan had at some point belonged to a corporate retirement savings fund, yet few knew much about the funds they were paying into.

And perhaps part of the solution. They could play a vital role in ensuring individuals are either not blindsided by unforeseen events or ill-prepared for the inevitable. In addition, members’ levels of disability cover may not be sufficient which means they may receive a lower income during disability.”The unexpected death of a life partner or spouse can have a severe impact on the retirement outcomes of the surviving partner. Due to the sudden loss of an additional income, the cost of a funeral and other related costs such as grief counselling, they may find themselves under severe cash flow pressure if their partner was not adequately covered.

 

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