Retirement Planning
The risk of one’s annuity income not keeping pace with inflation is another major risk that retirees need to contemplate, especially as medical inflation continues to outstrip consumer inflation by around 4% year-on-year.
If you have not previously withdrawn from your preservation fund, you can then exercise your right to make a full or partial withdrawal before the minimum retirement age.
As opposed to an investment in property, life rights ownership is an investment in lifestyle, security and peace-of mind, but it is important to understand the legal and financial consequences of buying into such a scheme.
Because women generally live longer than men, there is a very real chance that women will find themselves living alone for a period in their retirement, and this needs to be accounted for in one’s retirement plan.
Buying branded clothing and shoes does not guarantee a better quality product, and spending your hard-earned money to prove to others that you can afford to buy branded clothing is counter-intuitive. If you’re wearing branded clothing but haven’t started saving,
Whether it’s dumping shares, stocking-piling toilet paper or sipping bleach, greed and fear can drive seemingly rational people to make irrational decisions, especially in times of crisis.
Think disability and our minds tend to think of the worst possible scenarios involving permanent injury and disfigurement. Rather than permanent disability, it is temporary disability or illness that we should in fact be more concerned with.
It is wishful thinking to not plan accordingly for the high costs of post-retirement healthcare because ill-health comes hand-in-hand with aging.
In trying economic times, channelling funds towards a long-term investment may require some budget manipulation – which is easier to undertake if you consider the ultimate goal of retirement on your own terms and in your own time.
