What you should be doing to protect your retirement savings

Check what your retirement savings are likely to generate as an income. Get an adviser to help you to work out a long-term strategy that will ensure your savings generate the income you want.

Your savings are for the long term, so do not react to short-term changes in the market.

If you are still a long way from retirement, your savings should have a high exposure to growth assets, such as equities and listed property.

If you are approaching retirement, re-assess your investment strategy to fit your plan to convert your savings into an income in retirement. It is best to assess your strategy with the help of a suitably qualified financial adviser.

Good diversification is important and is likely to be safer than trying to time the market(s).

Socially responsible investing is a good idea as this focuses on boosting employment, safeguarding our environment and creating equitable, sustainable growth. As future output is the key issue for pension funds, investing in a way that builds a better South Africa is the best form of protection for pension funds and their beneficiaries.

The Pension Index is based on an assumption that you save for 40 years and do not withdraw your savings during your working life. Many South Africans retire with only a third of the replacement ratio they targeted and typically the culprit is a withdrawal of their savings instead of preservation when changing jobs. – John Anderson, Alexander Forbes