Move up retirement age

Johann van Tonder, economist and researcher of financial wellness at Momentum, advises that employers consider moving the retirement age of their employees up by at least a year, to give households the time to recover “from the effects of the coming market crash on their retirement investments”.

He emphasised the need for households to understand that their long-term goals will be affected by the pandemic.

“In these unprecedented and unpredictable times, don’t let your anxiety rule your decision making,” Van Tonder said.

Carla Oberholzer, debt advisor at DebtSafe, agreed that people need to step away from loaded emotion and know that this pandemic and its financial implications were out of their control.

“They should not be so hard on themselves. The burden is already hard enough out there – no need to be their own worst supporter,” said Oberholzer.

She advised households to become innovative, creative and proactive when it came to their finances, financial situation or debt.

Oberholzer said those who were currently receiving their full salary should avoid luxury purchases.

“Tuck savings away in your emergency fund – for example, a few rands that would have normally been used for fuel or transport … . Keep the entire household up to date with the financial situation so that everybody can work together to deal with or play their part during the situation.”

She said those who were receiving part of their salary should ensure that they were in regular communication with their employer or human resource department to see if the organisation has applied for the UIF Ters (Temporary Employer/Employee Relief Scheme) benefit.