Johannesburg – Many South Africans only realise when it is too late that the money they splashed out on expensive cars and holidays should rather have been saved for a cushy retirement.
This is according to chief economist at Old Mutual Investment Group Rian le Roux, who said very few South Africans can actually retire comfortably.
He said most people don’t realise that they are not saving enough for their future liabilities.
“Future liabilities may include anything from paying for a child’s wedding to a child’s education and more importantly for retirement.
“It is estimated that only about 6% of South Africans can retire comfortably”.
He cited a survey done among South African retirees indicating that about 60% of them had a shortfall of income over their expenditure last year, and had to cut back on certain expenses.
Watch the full interview for more tips on savings:
“Very often people only look at their retirement funds a year or two before their retirement and some don’t even bother to do that, and then one or two years into retirement they discover that they don’t have sufficient capital in their investment funds to be able to give them a good financial situation during their retirement.”
Le Roux urged consumers to make sure that they are actually saving enough for retirement.
* Are you putting enough money away for your retirement? Use this calculator to tally your monthly income at retirement age from the money you're saving.
- Fin24
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This is according to chief economist at Old Mutual Investment Group Rian le Roux, who said very few South Africans can actually retire comfortably.
He said most people don’t realise that they are not saving enough for their future liabilities.
“Future liabilities may include anything from paying for a child’s wedding to a child’s education and more importantly for retirement.
“It is estimated that only about 6% of South Africans can retire comfortably”.
He cited a survey done among South African retirees indicating that about 60% of them had a shortfall of income over their expenditure last year, and had to cut back on certain expenses.
Watch the full interview for more tips on savings:
“Very often people only look at their retirement funds a year or two before their retirement and some don’t even bother to do that, and then one or two years into retirement they discover that they don’t have sufficient capital in their investment funds to be able to give them a good financial situation during their retirement.”
Le Roux urged consumers to make sure that they are actually saving enough for retirement.
* Are you putting enough money away for your retirement? Use this calculator to tally your monthly income at retirement age from the money you're saving.
- Fin24
Consider yourself a savings hero? Or just have something on your mind? Add your voice to our Savings Issue:
* Write a guest post
* Share a personal story
* Ask the experts