Retirement was invented by the German's I believe who allowed workers to retire at the age of 65. In those days the average life expectancy was 65! Needles to say not many got to enjoy a retirement! I believe we are in a era where the concept of "retirement" will fade. The primary reason is that people are not saving enough to afford the luxury of a comfortable retirement. So, if you are young the topic of savings is frivolous however foolish decisions well you are young will catch up later.
I was in our local pizza outlet the other day, while waiting for my order an elderly gentleman I would say late 60's or early 70's came into the store dressed in the delivery uniform. His facial expression was one of stress and I am sure embarrassment as clearly he had a career of some sort in the past. Now he is having to deliver pizzas! This made me revisit this topic as the reality of not providing for later days was clear and left a lasting impact.
So, here are the facts:
1. The average age of retrenchment in SA is forty four years old (white males).
2. The average person will change jobs every two to three years
3. The majority of people in SA work in the SME sector and receive no pension benefits.
4. The average lifespan has increased to over 80 and scientists believe generation x will live to over
5. In today's terms a very average pensioner will need around R20,000 per month to cover living
costs and medical expenses. This of course assumes that person has a paid for home and is out of
debt. This equates to around R4 million in capital needed.
1. Get out of debt and start saving, save, save focus on your net worth.
2. While you have an income (gear) buy income yielding property not residential.
3. Do not put all your eggs in one basket diversify your investments in income producing
investments look for yield not gains!
4. Think of ways to generate extra income streams - income is every thing.
Tuesday, February 5, 2013
Widening gap between reach and poor globally
The World Economic Forum meets in Davos, amid a growing focus on the global gap between rich and poor. The W-E-F’s Global Risk report identifies inequality as one of the top risks for 2013. Countries like Namibia, Brazil and South Africa are said to have the highest levels of inequality.
Labels: SA Economy