Welcome to the Pogir Group, we have over 54 years of expertise.

011 879 7200/7250
info@pogir.co.za

St Andrews Office Park
39 Wordsworth Avenue, St Andrews.

08:00 – 16:30
Monday to Friday

We make it our business to make it personal. Giving you lasting peace of mind.

Retirement: The Facts

How seriously have you considered the challenges of surviving retirement financially?

Experts estimate that the majority of South Africans saving for retirement today are in for a shock. We’ve all heard the common wisdom:

  • Save around 15% of your income every month from the start of your career.
  • Adjust annually for inflation, year on year.
  • At retirement, you should then have approximately 70% of your current median salary figure available every month to live on.

The problem is that it’s no longer true. Not even remotely. Thanks to spiraling costs, diminishing returns on poorly chosen investment options, and seismic socioeconomic shifts, most people are likely to have far less. In fact, it’s estimated that most South Africans who do have a retirement plan will find themselves living on only around one-third of their current income!

The good news? You have the power to make sure it doesn’t happen to you.

When Should You Start Planning For Retirement?

Ask any financial advisor when you should start planning for retirement. Odds are they’ll tell you that the best time is from the moment you start earning money. And it’s true that the ‘day one’ approach is best, but there’s far more to surviving retirement financially than that.

Whether you’re launching your career, or a good way up the ladder you’ve chosen, there are some important things to consider. And the most important is that your retirement fund – corporate or private – might not be enough to keep you afloat as you age. In principle, retirement planning is simple, but a ‘set and forget’ approach can expose you to unseen financial risks.

Use It Or Lose It

If you’re like most people with an RA or similar retirement plan, you might assume that it’s enough to meet your basic needs. But just like staying physically healthy, your financial health depends on the focus and consistency you apply to maintaining and building it.

Increasing your income is a worthwhile goal. Long-term wealth, however, isn’t about how much you make – it’s about how much you keep. Having an intelligent and well-informed financial strategy is the first and most important step to retiring comfortably. And the best way to become well informed is to partner with experts who can guide you.

So, what does ‘retiring comfortably’ really mean?

More Than Just Money

At retirement, you ideally want to be in a position where you shouldn’t have to worry excessively about your financial means. That said, money for its own sake isn’t the only goal. You want to maintain a standard of living that allows you the freedom to live on your terms:

  • Perhaps you’d like to live in line with your current means, while having the ability to afford luxuries if you really want them.
  • You want a financial safety net in case of unforeseen crises or adversity.
  • Access to high quality healthcare should be a priority.
  • With more time at your disposal, you may value life-enriching experiences like more frequent travel or new hobbies.
  • Quality of life and a sense of independence are important, and you’d like to have the means to support both.
  • You’d like to build wealth more effectively to ensure a good inheritance for your beneficiaries.

For some, these may seem like ambitious goals, while for others, they may be an absolute minimum. Whatever your position, the key is to start taking practical steps right now to improve your long-term financial position.

Smart Steps You Can Take Right Now

For many people, financial planning, especially retirement planning, is something they’ll attend to ‘when they have time’… and so they tend to put it off. It’s critically important to remember that the sooner you act, the more likely you are to reap the benefits.

There are several you should do

Consult With a Professional

The first and most important step is to talk to a qualified and trustworthy financial advisor about your life financial planning goals. A good advisor will help you by appraising your current financial situation and recommending intelligent options that will best serve you.

Reduce or Optimise Your Fixed Expenses

As practically as possible, look at ways of rationalising your current fixed expenses. Ideally, the goal is to free up income that can better be invested for your longer-term benefit. Of course, this doesn’t mean compromising your standards. Rather, it means being conscious of life changes or opportunities that enable you to manage your expenses more effectively.

Invest For Stability

When it comes to financial growth, slow and steady wins the race. Yes, you may be the recipient of financial windfalls or encounter unusually profitable investment opportunities – but history demonstrates that consistency always wins. At the Pogir Group, our team of vastly experienced and knowledgeable investment are specialists in their field.

Access Additional Income Streams

In a decentralised global economy, there’s never been a better time – or greater opportunity – to access additional income streams. Whether you’re an experienced CEO building a legacy business, a part-time hobbyist trading online, or an investor seeking more diverse opportunities, it pays to embrace an entrepreneurial mindset.

Consider Your Investment Options

With the assistance of skilled and capable advisors, your retirement investments can be leveraged to your advantage. By selecting the investment vehicles best suited to your purposes, you’re able to stay abreast of changes while preserving the value of your retirement fund and other investments.

Keep Working and Earning

Tempted by the prospect of early retirement? Unless you’ve already accrued significant wealth, you may want to reconsider. If you’re earning a salary and your employer is contributing to your retirement benefits, an additional 1-5 years of service can make a dramatic difference to the accumulated capital from which you’ll be drawing an annual percentage.

Embrace Healthy Choices

Lastly – and this may seem obvious – it pays to invest in your physical well-being, too. Medical expenses, especially for chronic conditions or health emergencies, can take a toll on your retirement funding. By taking care of your health, you’re less likely to incur excessive medical expenses.
And, needless to say, having comprehensive health cover is a lifelong necessity.

Yes, You Do Need Professional Financial Advice

The renowned physicist Richard Feynman famously said: “The first principle is that you must not fool yourself – and you are the easiest person to fool.”

Smart retirement planning shouldn’t be a DIY endeavour. At the Pogir Group, we’ve earned a reputation for excellence thanks to our trustworthy, personally tailored approach to financial planning. We’ll help you by presenting the very best options coupled with professional advice and assistance.

Retirement, after all, should be something to look forward to.

Pogir. Smart, with heart.

Contact us today and discover how we can assist you with retirement planning, life financial planning, and smart investment strategies.

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LINK INDEX

surviving retirement
https://businesstech.co.za/news/wealth/528464/how-much-money-you-need-to-retire-comfortably-in-south-africa-according-to-experts/

focus and consistency
https://www.mandg.co.za/insights/articlesreleases/the-secret-to-a-successful-financial-plan-consistency/

life financial planning
https://www.pogir.co.za/life-financial-planning/

comprehensive health cover
https://www.pogir.co.za/medical-aid-updates/

Contact us today
https://www.pogir.co.za/contact-us/