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As the saying goes: Go to school, then university, get a degree, find a secure job and you will be sorted, but is this enough today, asks Fin24 user Kim Whitmore. She writes:
NEXT YEAR, at age 22, I will start work as a graduate and like most of my peers, will probably retire at 65.
I have always grappled with the question: How many years to save for retirement?
On average, my family lives to the ripe old age of 95. So, if I want to be ‘safe’, I need to save enough money to live until I am 100 years old.
Unfortunately this is way above the South African national average and consequently retirement funds do not make their calculations based upon a life expectancy of 100 years.
So, taking the above scenario into consideration, I have calculated that in 43 years' time, I must earn sufficient money to not only provide for my active working years, but also to save for 35 years of retirement.
I have realised that I have to save as well as cover other commitments such as medical expenses, schooling for children, car and bond repayments, household expenses and the odd holiday.
How do I do this with savings accounts or unit trusts or retirement annuities that produce interest that barely keeps pace with inflation? When I do the numbers, this converts to having to save roughly half of my 43 years' salary to be able to cope with retirement… Eeish!
Another worry is that at the age of 17, I was in a serious car accident and instantaneously realised that an accident can happen at any time, which could prevent you from working for the rest of your life. Clearly an alternative solution is required.
So what are that solution(s)?
Taking into account the considerations set out above, I've deducted that one should constantly search for alternative sources of income (apart from a salary) which will provide passive income that once in place, do not require constant supervision.
My research has shown me that property seems to be an answer and I am exploring buy-to-let investment properties. I've stumbled across a website called Organic Growth, which have shown me a plan to retire early without costing me half my income.
Some questions I, and I think others, should often ask:
* So what happens if I outlive my retirement?
* Is my plan to have enough children who will look after me in your old age?
* And am I willing to be a burden on them and their spouses?
* Or perhaps your health will allow you to resume working at the age of 80 or 90 years old?
For an independent woman like myself, I want to know that I can take care of myself even if I live for a full century.
What do you have?
- Fin24
* This is a Fin24 user submission. Add your voice to our Women's Wealth Issue and help empower others this Women's Month.
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Ask the experts
NEXT YEAR, at age 22, I will start work as a graduate and like most of my peers, will probably retire at 65.
I have always grappled with the question: How many years to save for retirement?
On average, my family lives to the ripe old age of 95. So, if I want to be ‘safe’, I need to save enough money to live until I am 100 years old.
Unfortunately this is way above the South African national average and consequently retirement funds do not make their calculations based upon a life expectancy of 100 years.
So, taking the above scenario into consideration, I have calculated that in 43 years' time, I must earn sufficient money to not only provide for my active working years, but also to save for 35 years of retirement.
I have realised that I have to save as well as cover other commitments such as medical expenses, schooling for children, car and bond repayments, household expenses and the odd holiday.
How do I do this with savings accounts or unit trusts or retirement annuities that produce interest that barely keeps pace with inflation? When I do the numbers, this converts to having to save roughly half of my 43 years' salary to be able to cope with retirement… Eeish!
Another worry is that at the age of 17, I was in a serious car accident and instantaneously realised that an accident can happen at any time, which could prevent you from working for the rest of your life. Clearly an alternative solution is required.
So what are that solution(s)?
Taking into account the considerations set out above, I've deducted that one should constantly search for alternative sources of income (apart from a salary) which will provide passive income that once in place, do not require constant supervision.
My research has shown me that property seems to be an answer and I am exploring buy-to-let investment properties. I've stumbled across a website called Organic Growth, which have shown me a plan to retire early without costing me half my income.
Some questions I, and I think others, should often ask:
* So what happens if I outlive my retirement?
* Is my plan to have enough children who will look after me in your old age?
* And am I willing to be a burden on them and their spouses?
* Or perhaps your health will allow you to resume working at the age of 80 or 90 years old?
For an independent woman like myself, I want to know that I can take care of myself even if I live for a full century.
What do you have?
- Fin24
* This is a Fin24 user submission. Add your voice to our Women's Wealth Issue and help empower others this Women's Month.
Write a guest post
Share your coping tips
Ask the experts
