Posted by: A very worried Kobus | 2013/10/03 15:04
Been around the block a few times and off course know what retrenchment feels like and to loose everything you have got including having to use whatever little bit of pension one had to try and survive inbetween periods of being unemployed. However, I am constantly stressed about reaching retirement age and the total amount of money in my provident fund is only something like R330k (been employed for 10 years since the last retrenchment). Also asked them to increase my profident fund contributions from R1000 (my part at work) to an additional R600 pm. I also took out one of these Old Mutual pension fund specials (for only R150pm) but already being 49 and hoping to retire at 65, I know that this just aint enough. None of the financial experts whom I contacted at my co's provident fund pension co ever phones back to see what I can do to increase my pension to at least be able to survive and maybe you can help me with some advise? Thank you.
Posted by: Sorè Cloete | 2013/10/07 12:08
for your question. It is really great
that you are acknowledging the importance of saving for retirement, and making
additional contributions to your compulsory retirement savings at work. Additional contributions will already assist
you in your retirement provision.
First of all you need to determine what your
goal is, therefore how much you would need at retirement. Various factors are
taken into account to determine your goal, like the term to retirement (in your
case 16 years to your age 65), your possible life expectancy after retirement,
the inflation rate and the possible growth/investment rates of investments. A
full financial needs analysis therefore needs to be done to determine your
After your goal has been
determined appropriate investment vehicles should be looked at to meet your
goals and expectations. A financial
adviser, registered with the FSB, should be approached to assist you with a
financial analysis to determine what will suit you. Most financial services providers have
websites where such financial advisers may be contacted. One of them is Old Mutual, where the website:
www.oldmutual.co.za may be visited or alternatively the Old
Mutual may be contacted on 0860 60 60 60.
Fin24 cannot be held liable for any decisions made based on the advice given by independent experts, and disclaims all responsibility or liability for any damages whatsoever resulting from the use of the site