The two-pot retirement system will come into effect on 1 March next year, according to draft legislation published for public comment by National Treasury on 31 July. However, in an accompanying media release, Treasury said the proposed 2023 implementation date was optimistic, because retirement funds will have to change their rules and systems, and the […]
Most respondents who participated in the latest Just Retirement Insights survey believe it is important to set objectives based on their financial needs, but more than 60% said they intend to decide what to do with their retirement money without consulting a financial planner. Participants were asked, “Are you likely to decide for yourself what […]
A tax-free savings account (TFSA) can help retirement fund members who bought living annuities to reduce their marginal tax rate, hence maximising their after-tax income, says Paul Hutchinson, a sales manager in Ninety One’s South African adviser team. A minimum income rate of 2.5% a year must be taken from the living annuity, taxable at […]
The Labour Appeal Court (LAC) has ruled that an employee who worked for four years after he reached retirement age was entitled to severance pay based on his entire period of employment, not only the four years after he retired. Werksmans Attorneys says the case is important because the court found that a break in […]
Retirement – particularly forced retirement – of financial advisers poses problems not only for advisers and their practices, but also for their clients, says Guy Holwill, the chief executive of Fairbairn Consult. Young advisers typically start working with people in a similar age bracket, and they form friendships over the next 20, 30 or 35 […]
Alexander Forbes says it supports National Treasury’s proposed “two-bucket” system, as its latest Member Insights highlighted non-preservation as the main reason only 6% of fund members can expect to retire with a replacement ratio of more than 75%. The average fund member can expect a replacement ratio of 40.51%, while the actual ratio in 2020 […]
The key findings of Just SA’s latest tracking study Retirement Insights 2020 reveal the knock in confidence suffered by South African retirees and pre-retirees as a result of COVID-19, which has altered their views on the best way to invest their retirement savings. This year the “lite” tracking study specifically assessed the impact of COVID-19 […]
The 10X Investments’ Retirement Reality Report (RRR20) discussed last week, confirmed SA’s looming retirement crisis and delved deeper into factors affecting people’s retirement planning in South Africa. Looking at the role of employers in South Africa’s retirement crisis, RRR19 shone a light on the missed opportunity of actively engaging employees in the savings process to […]
The annual 10X Investments’ Retirement Reality Report (RRR20), released last week, is one of the most significant surveys published in a long time. It is of specific importance to financial advisers who face the difficult task of having to convince clients to prepare for the inevitable. Earlier this year, the Old Mutual Savings & Investment […]
The annual 10X Retirement Reality Report indicates that saving for retirement is effectively insurance against outliving working life. Although this is a valid argument, why does such a high percentage of respondents not have a plan? Here are some of the reasons emanating from the survey: ● I cannot afford to save; I have nothing […]
