“We are all at a crossroads and needing to reimagine our future. Several macro trends were already in play before COVID arrived and this has just escalated the conversation and the need to act,” Lynda Smith, CEO of 50plus Skills mentioned at a recent COVID-19 webinar hosted by 50plus Skills and sponsored by Just Retirement Specialists.
Smith identified three macro trends that are impacting retirees in different ways: longevity, technology and COVID-19. “Studies show we are living 10 years longer than our parents’ generation and double that of our grandparents. The arrival of COVID-19 and rapid advancement of technology has forced many people of retiring age to shift into a much higher gear at a much faster pace than expected,” she said.
All things considered; how can retirees ensure they have sufficient retirement funds to see them through their golden years?
While the COVID-19 crisis initially provoked anxiety, Just CEO, Deane Moore reaffirmed that a retiree’s approach to retirement should remain the same, regardless of market conditions. When planning for retirement, he urged participants to think about their retirement savings in two parts – needs and wants. He then identified three sensible steps to follow to best manage and protect retirement income.
Besides drawing up a budget and choosing an appropriate retirement product for each pot, he emphasised the role of the financial advisor. “Research states that roughly 95% of South Africans reach retirement without sufficient income to sustain their lifestyles. So, just as you would not expect to treat your own medical ailments at 60, it makes sense to seek the advice of a qualified financial adviser to help you understand your options within your individual context,” Moore explains.
Click here to read the Just media release.