Retirement reality check: Are you prepared for 20 extra years?
Gary Mockler Group Chief Executive Officer _______________________________________________________________________________________________________ Do you know you may live 20 years longer than your parents did? Most South African companies have a retirement age of 65. If you work for a bank or similar financial institution, there’s every chance that retirement age is 60. On average, South African retirement funds have a gross contribution (from both the company and the employee) of some 16% according to the annual Sanlam survey. Remembering that costs and insurance are deducted from this gross amount, the net percentage of payroll allocated to retirement funding is just over 14%. While retirement funds, stipulated retirement ages, and retirement contributions have not substantially changed over the past 40 years, longevity statistics show that if you’re now 40, you could have a real expectation of living 20 years longer than your parents did. According... Read More
Financial advice I would give my twenty-year-old self
Reflecting on my journey from a modest childhood background to a comfortable retirement, here are key insights that I would give my younger self if he (or is it me?) was starting a financial journey now. Early beginnings and career Growing up in a large family (I was one of 10 children), financial stability wasn’t a given. I started my career with minimal income during military service, later qualifying as a Chartered Accountant. Marriage and children followed, prompting us to invest in a home, together with the conventional process of raising a family. Do you start with your head, or your heart? It’s all very well to pursue a prospective career based on ones prevailing interests. Choosing a qualification and career path that provide for realistic financial reward, rather than the idealistic pursuit of a life passion is a reality... Read More
