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Sustainable income in retirement

By Pieter Koekemoer, Head of Personal Investments, Coronation

One of the toughest financial planning tradeoffs, is ensuring that retirees’ post-retirement income is sustainable over the full period of retirement, without compromising more than is necessary on living standards in the first half. A task that is further complicated by the prevailing expected low-return environment – local interest rates are at their lowest in 40 years and local growth assets are fairly fully priced. Added to this is the scarcity of capital available for the task as most South Africans did not save enough during their working life to comfortably sustain their living standard through retirement.

This article focuses on the key risks facing retirees, looks at the current state of the retirement income market and proposes three strategies that can be used to manage the tradeoffs that many retirees need to make.

Please click here to download the article, which you are at liberty (or should that be Coronation) to share with your clients.


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