HEARD street on the

CityPress - - Tenders - COM­PILED BY NEESA MOOD­LEY

Nearly 50% of pen­sion­ers have too lit­tle to live on

The 2016 San­lam Bench­mark Sur­vey has found that only 35% of pen­sion­ers be­lieve they have saved enough for re­tire­ment, while a stag­ger­ing 48% ex­pe­ri­ence a short­fall between in­come and liv­ing ex­penses each month.

Viresh Ma­haraj, chief mar­ket­ing ac­tu­ary at San­lam Em­ployee Ben­e­fits, be­lieves that this un­der­sav­ing for re­tire­ment is partly due to a lack of ad­vice. Three out of ev­ery four pen­sion­ers in­ter­viewed said that they had only re­ceived fi­nan­cial ad­vice within 10 years of re­tire­ment, and 32% only be­came aware of their re­tire­ment ben­e­fits five years be­fore re­tire­ment, which gave them in­suf­fi­cient time to sup­ple­ment re­tire­ment sav­ings, if nec­es­sary.

Ma­haraj says that the lack of ad­vice is also ap­par­ent when it comes to pre­serv­ing funds and that “55% of pen­sion­ers in­ter­viewed ad­mit­ted to with­draw­ing their ben­e­fits in full dur­ing the course of their work­ing lives. At least 38% of the sur­vey group re­vealed that they were un­aware of the long-term ef­fects of with­draw­ing the money, and an as­tound­ing 48% re­gret with­draw­ing it. The im­por­tance of preser­va­tion must be stressed to mem­bers by both em­ploy­ers and ad­vis­ers early in the re­tire­ment-plan­ning jour­ney.”

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.