‘Re­tire­ment may have to be re­tired’

Pretoria News Weekend - - OPINION -

ca­reers for many.

“There is a very real chance that the con­cept of re­tire­ment it­self will need to be re­tired, as we pave the way for the new in­ter­con­nected world of work. This change is very much a re­sult of the Fourth In­dus­trial Rev­o­lu­tion and a num­ber of fac­tors, in­clud­ing in­di­vid­u­als liv­ing longer, health­ier lives, the ad­vance­ment of tech­nol­ogy, and the over­all chang­ing na­ture of work,” Dar­foor says.

Th­ese present new chal­lenges not only for fi­nan­cial plan­ning, but also for the re­tire­ment in­dus­try in South Africa, Dar­foor says in the fore­word to a new book on re­tire­ment and fi­nan­cial plan­ning, The Ul­ti­mate Guide to Re­tire­ment in South Africa, spon­sored by Alexan­der Forbes. The book has been writ­ten by former Per­sonal Fi­nance ed­i­tor Bruce Cameron and Wouter Fourie, South Africa’s Fi­nan­cial Plan­ner of the Year for 2015/16.

Cameron and Fourie note in the book that, in fu­ture, re­tire­ment sav­ings will have to last for longer. They point out that there are only three so­lu­tions to the prob­lem of not hav­ing money saved by the time you ex­pect to re­tire. Th­ese are that you must con­tinue to work, re­duce your stan­dard of liv­ing or rely on the good­will of oth­ers.

Dar­foor says that in nav­i­gat­ing this com­plex path, in­di­vid­u­als will have to take on more re­spon­si­bil­ity and own­er­ship in plan­ning for re­tire­ment. This will in­clude look­ing to in­vest ap­pro­pri­ately, with guid­ance from a trusted fi­nan­cial ad­viser, and get­ting value for money on their in­vest­ments.

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