MyMoney Online, Personal Finance with Warren Ingram

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
Your history – not your reality – often determines how you build your business

Your history – not your reality – often determines how you build your business

Three growth strategies – aggressive, defensive, passive - dominate. Your history drives your choice, says Pavlo Phitidis.

'I would take the Prosus shares (25%) as well as Naspers (75%) shares'

'I would take the Prosus shares (25%) as well as Naspers (75%) shares'

Should Naspers shareholders take up Prosus shares? Bruce Whitfield interviews personal finance advisor Warren Ingram.

Woolworths (at R40 a cup!) makes the best takeaway hot chocolate in South Africa

Woolworths (at R40 a cup!) makes the best takeaway hot chocolate in South Africa

Seattle Coffee Company has the worst takeaway hot chocolate in the country, according to, uhm, "research" by Chaos Theory.

Old Mutual and Trevor Manuel are victimising Peter Moyo - Advocate Dali Mpofu

Old Mutual and Trevor Manuel are victimising Peter Moyo - Advocate Dali Mpofu

The Money Show's Bruce Whitfield interviews TJ Strydom, a journalist at Business Day and author of Christo Wiese’s biography.

You made a huge mistake downloading FaceApp if your privacy is important to you

You made a huge mistake downloading FaceApp if your privacy is important to you

Washington Post technology columnist Geoffrey A. Fowler did a forensic analysis of the Russia-based app. Check it out.

How to buy a new car even if you don’t really have enough money for it

How to buy a new car even if you don’t really have enough money for it

South Africans are increasingly buying cars they can’t afford using balloon payments, says consumer journalist Wendy Knowler.

Popular articles
[VIDEOS AND PHOTOS] SANDF troops finally roll into the Cape Flats

[VIDEOS AND PHOTOS] SANDF troops finally roll into the Cape Flats

Residents were out on the streets to watch the troops arriving in Manenberg and Hanover Park on Thursday afternoon.

[WATCH] Tour de France rider smashes into spectator's cellphone

[WATCH] Tour de France rider smashes into spectator's cellphone

Cycling journalist Mikkel Conde tweeted the clip warning spectators to stop leaning over the barriers with their phones.

You made a huge mistake downloading FaceApp if your privacy is important to you

You made a huge mistake downloading FaceApp if your privacy is important to you

Washington Post technology columnist Geoffrey A. Fowler did a forensic analysis of the Russia-based app. Check it out.

Beware 'dodgy' Nadal vs Federer ticket offers

Beware 'dodgy' Nadal vs Federer ticket offers

The Roger Federer Foundation says no ticket platforms are yet in possession of, nor have guaranteed allocation of tickets.

'Batchelor was once close to Mikey Schultz and self-confessed Kebble killers'

'Batchelor was once close to Mikey Schultz and self-confessed Kebble killers'

Journalist and author Mandy Wiener describes former footballer Marc Batchelor's links to alleged underworld figures.

How Christo Wiese became the richest in SA, and how it all came crashing down

How Christo Wiese became the richest in SA, and how it all came crashing down

The Money Show’s Bruce Whitfield interviews TJ Strydom, author of “Christo Wiese - Risk And Riches”.