Business Link

by Alec Riddle CFP® B.A.

Most people are too optimistic, as regards their future and believe that somehow and in some manner that their retirement will be catered for.

The statistics show that less than 10% will be able to retire and maintain a lifestyle close to the one they are currently enjoying. So what will the other 90% do, will they rely on their children and inevitably destroy their children’s future financial independence, as living off the government’s meager pension is surely not an option.

What I have found is that most people who plan properly are able to sustain their current lifestyle in retirement, so my first tip would be to ensure that you have a plan and be aware of what it is you require.

I have also found that most of the clients that I see have the capabilities of providing for a successful retirement and if they are serious about securing their financial future and follow our recommendations, they too will more often than not be able to sustain their lifestyle in retirement.

Here are some key tips to ensuring a healthy retirement:

Clearly identify your current and future lifestyle goals – both monthly expenses and your capital needs.
Identify how much capital will be required at retirement and what your investment strategy should be – e.g. a real return of say 5%.
Factor in a capital shortfall at retirement now & start making changes to how you work with your budget.
Don’t be ignorant of your required investment strategy. It is imperative that your current investments, including your Provident Fund and Retirement Annuities are targeting the return you require.
Request that your Financial Planner check whether your current provisions are in line with your requirements. If you don’t have a Planner, I recommend you consult with a Certified Financial Planning Professional.

Alec Riddle
FPI Financial Planner of the Year 2009
Consolidated Financial Planning (PTY) LTD
An authorised financial services provider
FSP License Number 12978
Tel: +27 41 37 37 999
Fax: +27 41 37 37 177
http://www.consolidated.co.za
alec.riddle@consolidatedec.co.za
221 Cape Road, Mill Park, PORT ELIZABETH, 6001