Guiding consumers since 2009

Retirees pass on financial tips to SA youth

By Staff Writer

Most South Africans are struggling to put extra cash aside for the future as they face uncertain unemployment and higher costs of living according to Sanlam’s 2012 Benchmark Survey. “In the face of a challenging financial environment, most South Africans are not where they thought they’d be financially and struggling to earn enough money to set aside funds for the future,” says Victor Kambule, regional manager of Sanlam employee benefits. “However, in the face of numerous challenges, there are some rare ‘savings heroes’ who are forgoing instant gratification in favour of long-term gain.”

It was found that among employees earning less than R10, 000 per month, any savings put aside rarely last more than six months due to financial difficulties. The main reason respondents cashed in their retirement policies early was to settle short term debt (36%), followed by paying the mortgage (29%), paying for home renovations (29%) and to cater to living expenses (24%).


Researchers interviewed retirees from across the financial spectrum and asked them for their advice on how the youth should prepare for their retirement. They came up with four major guiding principles:


1.    Start saving as early as possible. However small, put something aside when you can and leave it alone for as long as you can.


2.    Limit the amount of debt you take on. Debit is a slippery slope and it can be a crippling financial burden if you spend beyond your means.


3.    Take retirement seriously. Don’t wait to get advice from an accredited financial advisor. According to the survey, 65% of retirees receive retirement advice only 15 years before retirement.


4.    Prioritise health and medical care when saving for retirement. Without your health, you have nothing. The majority (65%) of retirees use state medical facilities to deal with a shortfall in medical aid contributions.
 

Recent Articles

Featured New homeowner? Be aware of these extra expenses

You’ve overcome all the hurdles of buying a home. You’ve managed to pay your deposit and your closing payments, and now you’re a proud title deed holder. However, there are other expenses waiting around the corner. Are you prepared?

Your biggest credit conundrums – answered

Understanding your credit health is one of the most important factors in managing your finances. This is because it gives you insight into your debt, your borrowing ability, and your financial history. While many understand this, there are still many questions on how to do just that.

Avoid debt collectors, choose debt counselling

There are two things you can do when you are struggling to pay your debt. You can either let your creditors hand your debt over to debt collectors – or you can let debt counsellors help you deal with your debt.

Retail notes: easy investment option for new investors

Being a newbie in the world of investing can be challenging because you don’t know where and how to invest. With so many investment options, you could easily be befuddled. Justmoney looks at how retail notes can help you cut your teeth in the world of investing.   

Deals

Translux Student Discount

Price: Depends on destination
When: Daily
Where: Nationwide

Zimbali Senior Citizens Discount

Price: From R1342.00
When: Until 14 December 2019
Where: KwaZulu Natal

Free meal for kids at Mozambik Restaurant

Price: Free
When: Until 15 November 2019
Where: Johannesburg, Durban, Pretoria