Tag: retirement age

No matter how much you love your job, financial freedom should be your ultimate goal. For those unfamiliar with the term, financial freedom can best be understood as a state where individuals or households have enough financial resources to cover their living expenses without having to depend on work to maintain their standard of living.

A recent judgment by the Labour Court confirms the current untenable position that many working-class South Africans find themselves in - being unable to retire comfortably at the standard retirement age, thus necessitating working beyond retirement.

With its two-tiered, highly unequal healthcare system, only 14.86% of South Africa’s population can currently afford private healthcare, and rising costs are making it difficult for many to keep paying their monthly medical aid premiums.

The book explores how declining fertility rates globally will lead to a shrinking workforce, and more importantly, to a reduced number of “essential workers”, which could massively disrupt everyday lives. Essential jobs maintain the structure that upholds society – think of plumbers, truck drivers, healthcare workers and farmworkers – and when these workers are in short supply, society could start to fray.

With the increased cost of living, managing your money in your retirement years can be a challenging exercise for many. Running out of money during one’s retirement years is a prime concern for many retirees.  Although people have reasons to be concerned with the rise of economic pressures and the cost of living, consumers can lessen the risk of running out of money in retirement with proper financial planning and sound money management tools. 

Whether through resignation, retirement or retrenchment, people change jobs all the time. Unfortunately, most of them cash out their pension funds when they do – and it’s one of the biggest reasons why only 6 out of every 100 South Africans end up with enough money to retire, according to the South African Treasury.

Nobody enjoys paying tax, but since it’s our legal obligation, we may as well make the most of it by legitimately saving where we can. Because tax savings - even if fractional - compounded over prolonged periods of time can contribute significantly to any person’s financial position.

An early start is at the heart of achieving sufficient financial resources for the lifestyle you desire for yourself and your family. It gives your investments more time to compound and grow. There are rules of thumb for younger investors who want to secure a strong financial future.

As the two countries implement reforms, the local situation is unlikely to spiral out of control as it did in France. In October 2010 there were massive strikes across France against pension reform. Activist Jean-Baptiste Reddé’s slogan “Ecoutez la colère du people" (Listen to the people’s rage) became world famous as the symbol that epitomised public sentiment.  

Retirement planning is one of the most important parts of your financial journey, but it is often neglected or postponed until close to retirement age. Starting to plan for retirement is easier when you are still young, and you have few financial responsibilities.