MyMoney Online, Personal Finance with Warren Ingram, Evergreen Content

3 risks to your retirement savings (and how to mitigate each of them)

Only five out of 100 South Africans who are retirement fund members can retire comfortably.

In other words; only 5% of South Africans who are actively saving towards retirement will do so successfully.

The Money Show’s Bruce Whitfield asked Galileo Capital Personal Financial Advisor Warren Ingram to discuss three risks to your retirement plans, and how to mitigate them.

The risk of living longer than you planned.

Living longer than you planned for isn't great if you don’t have enough savings.

Cost of living increases speed up as you get older.

Medical costs can be a nightmare.

It’s best to plan for a life far longer than you expect (e.g. prepare to live until 100).

You should also consider working for longer than you originally planned.

The risk of becoming complacent while working.

Many people mindlessly save each month into their company pension fund, and that’s it.

They don’t look at their asset allocation (say what?) or calculate if they’re saving enough.

Do you increase these contributions each year when you receive a salary adjustment?

You need to have a game plan and set goals for your family.

At what age would you like to be financially free?

What age will you become debt free?

What happens once you have retired?

Have you invested your retirement funds correctly?

Are you drawing a sustainable income?

The risk of ignoring your emotions.

People base most of the critical decisions they have to make when thinking about retirement on emotions.

How will you react when you are living off your investments, and the market has been moving sideways for nearly five years?

Your risk tolerance plays a vital role.

So many investors damage their wealth by making emotional decisions (e.g. panicking and selling out, thereby “realising” what could’ve been a temporary loss).

To avoid this fate; have a game plan, and stick to it.

For more detail listen to the interview in the audio below.

Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning:

Subscribe to our Business Wrap Newsletter


Recommended

by NEWSROOM AI
Read More
Huawei owner? Why you may want to trade yours in for a Samsung

Huawei owner? Why you may want to trade yours in for a Samsung

No more operating system updates and future versions will lose access to Google Play Store, Gmail, YouTube and Chrome.

Standard Bank takes on Capitec Bank with low-fee account, gigabytes of free data

Standard Bank takes on Capitec Bank with low-fee account, gigabytes of free data

The account costs R4.95 per month; you get 1GB of free data. Swipe 4 times a month; you get 0.5GB of free data and R50 airtime.

How to live off a dread disease benefit

How to live off a dread disease benefit

Personal finance advisor Warren Ingram discusses "dread disease benefits", typically paid out as a lump sum.

Meet Dr Sibusiso Sibisi, inspiring math whiz at the head of Wits Business School

Meet Dr Sibusiso Sibisi, inspiring math whiz at the head of Wits Business School

Bruce Whitfield interviews Dr Sibusiso Sibisi, Director and Head at Wits Business School (WBS), for his "ShapeShifter" feature.

'I don’t spend much. I drive an old car. I’ve never been in debt'

'I don’t spend much. I drive an old car. I’ve never been in debt'

Bruce Whitfield interviews analyst Chris Gilmour about his attitude toward money (hopes and fears, successes and failures, etc.).

How to save and buy an island (you need only R2000 per month)

How to save and buy an island (you need only R2000 per month)

Saving money on boring stuff such as a car can allow you to do really outrageous and courageous stuff, says Sam Beckbessinger.

Popular articles
Standard Bank takes on Capitec Bank with low-fee account, gigabytes of free data

Standard Bank takes on Capitec Bank with low-fee account, gigabytes of free data

The account costs R4.95 per month; you get 1GB of free data. Swipe 4 times a month; you get 0.5GB of free data and R50 airtime.

[WATCH] Eusebius delivers emotional obituary for Kaizer Chiefs

[WATCH] Eusebius delivers emotional obituary for Kaizer Chiefs

The Glamour Boys lost the Nedbank Cup final to underdogs TS Galaxy on Saturday.

 Jacob Zuma back in court today, lawyer plans isiZulu opening statement

Jacob Zuma back in court today, lawyer plans isiZulu opening statement

Tiso Black Star specialist reporter Karyn Maughan discusses the former president's permanent stay of prosecution application.

'Driving licence backlog whittled down to about 30 000 nationally'

'Driving licence backlog whittled down to about 30 000 nationally'

Western Cape Transport MEC, Donald Grant, says there is progress in renewals which stood at about 200 000 two months ago.

'It is very clear that Ramaphosa is under attack from Magashule and others'

'It is very clear that Ramaphosa is under attack from Magashule and others'

News24 editor-in-chief Adriaan Basson says there is a definite fight back from the ANC secretary-general against the president.

[UPDATE] Kind-hearted listeners ensure murdered security guard receives burial

[UPDATE] Kind-hearted listeners ensure murdered security guard receives burial

Ernest Kanzi's family will take his body back to the Eastern Cape on Thursday thanks to the generosity of Clint Beech and others.

Schwarzenegger urges public not to give Sandton 'fan' the attention he craves

Schwarzenegger urges public not to give Sandton 'fan' the attention he craves

A video of a young man kicking actor and former US governor Arnold Schwarzenegger in the back on Saturday in Joburg went viral.

How to save and buy an island (you need only R2000 per month)

How to save and buy an island (you need only R2000 per month)

Saving money on boring stuff such as a car can allow you to do really outrageous and courageous stuff, says Sam Beckbessinger.