In November 2019, the “Just Retirement Insights 2019” study indicated that over 80% of a sample of South African pre-retirees and retirees are confident in their financial planning ability. Eight out of 10 said they’ve set financial goals and are working towards them, while two thirds felt they’ve become quite frugal with their money and are putting more thought and planning into their finances.
According to retirement income specialist Just, these results resonate with the growing global trend of an increased interest in financial planning. However, Just CEO Deane Moore remains highly concerned about South Africans’ misguided perceptions of retirement.
The Insights identified that a contradiction exists between people’s appetite for risk versus the reality of their financial situation:
|●||Almost two thirds of pre-retirees and retirees interviewed don’t mind taking risks and are willing to do so to reap rewards. In spite of this, two out of five people say they cannot afford to lose any of their retirement fund money before it affects their retirement plans. Additionally, given the poor investment returns of the past five years, South Africans who are currently retiring are also likely to find their assets worth about 15% less than they would have been in ‘normal’ investment conditions.|
|●||Just’s research showed that only four out of 10 pre-retirees and retirees use (or intend to use) the services of a professional adviser. Only 26% of respondents are considering discussing their retirement journey with an expert, yet over half have not yet calculated how much they need each year to live off in retirement.|
Click here to read the recent Just media release.