PERSONAL FINANCE: Four common mistakes that could jeopardise your retirement planning

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You’re probably going to live longer than your parents, but have you stopped to think about what that means for your retirement planning?

According to the South African Medical Research Council, the average life expectancy in South Africa is only 64.7 years. However, British economist and world-leading expert on longevity Andrew J Scott says we need to start planning for a life that will last to the ripe old age of 100. If you retire at 65, that would mean a retirement period of 35 years – almost as much time as you spent working if you started earning a salary at 25!1.

Instead of planning for a 20-year retirement period, ask your financial planner to draw up different scenario plans in which you live for 20, 30 or 35 years past retirement age. Your planner can ensure that you are saving sufficiently or come up with a feasible retirement plan. Pensioners are increasingly continuing to work post-retirement, and a side hustle or freelance work can bolster your retirement income.

 

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