The reality is that only 10% of South Africans end up with sufﬁcient capital to retire says certified financial planner Paul Roelofsef.
Does this mean retirement is an illusion for most of us? If that's the case, what are the options?
We all work towards the day that we will have enough saved up to retire comfortably. Roelofsef states that families are under immense ﬁnancial pressure taking care of dependents.
What tends to happen is more people actually end up depending on their families for retirement.— Paul Roelofsef, Certified Financial Planner
Roelofsef adds that state pensions don't offer that much as the cost of living escalates at a far greater rate than the state pension increases every year.
The only real solution is to create an ideal space for your own business. Something you are passionate about, that can generate an income which you can live off says Roelofsef.
Retirement is more of a western kind of thinking isn’t it. If you go to the east and you ask people about retirement, they look at you quite strangely and they say, well look you know, I don’t know what you’re talking about. A lot of them just carry on working.— Paul Roelofsef, Certified Financial Planner
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This article first appeared on 702 : How Real is Retirement?