5: Retirement Reimagined Episode 5: Facing the reality of retirement
In the latest episode of Retirement Reimagined, we examine what retirement means to those over 60. Using the findings from the FNB retirement survey, host Maya Fisher-French speaks to Renee Coughlan of FNB Wealth and Investment about the reality facing many retirees who feel less prepared than ever before.
Individuals over 60 report a lack of confidence in their retirement readiness, exacerbated by rising living costs and inflation. As Coughlan points out, the pension income that many retirees rely upon is not keeping pace with the cost of everyday essentials, from groceries to medical expenses. This stark reality has left many feeling anxious and uncertain about their financial futures.
One of the key themes discussed is the need to support multiple generations. Many retirees find themselves financially responsible for not only their children, but their elderly parents and even grandchildren, further straining their already limited resources.
Throughout the episode, the hosts emphasise the necessity of regular portfolio reviews. Coughlan stresses that many people only start to seriously consider their retirement plans as they approach their late fifties, which can be too late to make significant adjustments. Regularly reviewing investment portfolios, insurance policies, and budgeting can make a substantial difference in achieving retirement goals.
Budgeting is another critical topic covered in the episode. The hosts share practical advice for seniors, such as seeking out discounts and rewards programs and re-evaluating existing expenses. By making small sacrifices and adjustments, retirees can free up cash that can be redirected towards their retirement savings.
For those under 60, the episode serves as a wake-up call to begin preparing for retirement sooner rather than later. Retirement is not just about ceasing to work; it’s about living a fulfilling life. The financial landscape is changing, and it’s essential to be proactive in planning for the future.
Click this link for more information on the retirement survey. Don't miss the next episode, where we will discuss what prevents us from planning for retirement.
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A single mom's guide to drawing up a will
We asked many single moms what their greatest concerns were regarding drawing up a will. Host Maya Fisher-French asked fiduciary expert Deenisha Nadesan of Capital Legacy to answer them.
For most moms, their concerns were around who would look after their child, who would manage the money on behalf of the child, and whether they had enough to provide for their living costs and education.
We covered all the questions you need answers to including:
· Can I leave a property to my child
· What makes a will valid
· What happens to my pension fund?
· Can I nominate someone other than the biological father as guardian
· How does a testamentary trust work, and how is it different from a beneficiary fund?
· How much does it cost to draw up a will
· Who should be the executor
While this was a discussion about single moms, it is relevant to any parent.
Click here for the Single Mom's Guide To a Will.
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S2 Ep5: Money Bootcamp: Your debt, your responsibility and your rights
In the latest episode of the Santam Insure Your Future Money Bootcamp, we discuss the sensitive topic of debt. While we all need credit, especially to purchase a home or a car, if it is not managed carefully, it can become a debt trap which undermines all our other important financial goals.
Brian Mphakoanyane from Summit Financial joins hosts Maya Fisher-French and Mapalo Makhu to explain credit scores, good and bad debt, and what to do when debt becomes unmanageable.
The conversation delves into practical strategies for managing debt, understanding creditworthiness, and the importance of maintaining a healthy debt-to-income ratio. Brian shares insights on debt review, its pros and cons, and the significance of creating an emergency savings account while under debt counselling.
This episode is not just about understanding debt; it’s about empowering listeners to take charge of their financial futures. By providing practical tips and expert advice, this episode provides information to reassess their financial habits and make informed decisions. Tune in to gain the knowledge you need to transform your financial situation and pave the way for a brighter financial future.
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4: Retirement Reimagined Episode 4: Do we know how much we need to retire?
People are surprisingly confident about their retirement plans, so why are so many people underfunded?
In the latest Retirement Reimagined episode, host Maya Fisher-French and Ester Ochse, head of Integrated Advice at FNB, unpack why confidence does not mean preparedness when it comes to retirement.
While 25-27% of South Africans feel confident about their retirement preparedness, only 10% can actually afford to retire comfortably. This disconnect becomes even more pronounced with age – younger people display the highest confidence levels, yet this optimism crumbles as reality sets in during their 40s and 50s.
This is because people seldom have a retirement plan with specific goals and objectives. Most of the time, it is just a belief that because there is a retirement fund, whether that is through an employer or a retirement annuity, it will be enough.
Not investing enough and cashing in when changing jobs all negatively impact retirement outcomes, yet the wrong investment choices can also impact your ability to reach your retirement goals. Fixed deposits and savings accounts, while feeling "safe," are actually eroded by inflation over time.
In this episode, Ester discusses how to ensure that your retirement plan will deliver decent retirement outcomes, what type of investments are appropriate for retirement, and the importance of understanding how much is enough.
For more information on the retirement survey, click this link.
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S2 Ep4: Money Bootcamp: Budgeting as a homeowner
In this episode of the Insure your Future Money Bootcamp, hosts Maya Fisher-French and Mapalo Makhu discuss the financial journey of one of Maya's mentees who is in the process of buying her first home. They share practical insights and personal anecdotes that highlight the importance of thorough financial planning before making such a significant purchase.
Understanding the Costs of Homeownership
Maya and Mapalo emphasise the importance of not rushing into homeownership and instead taking a calculated approach by evaluating current expenses and potential new costs. The mentee has been diligent in budgeting, ensuring she understands the costs of levies, utilities, and maintenance before making an offer on a property.
Key Considerations for Homebuyers
The hosts outline crucial factors to consider beyond personal budgeting. They stress the importance of obtaining levy statements and understanding the financial health of the body corporate, as well as the need for a home inspection to uncover potential issues before moving in. They also touch on the often-overlooked costs such as rates and taxes, which can come as a surprise to new homeowners.
Navigating Mortgage Options
Maya and Mapalo highlight the necessity of shopping around for the best mortgage rates, advising listeners not to be tied to their current bank. They discuss the benefits of using a bond originator and the potential for banks to offer 110% mortgages for first-time buyers, covering both the purchase price and additional costs.
Final Thoughts
Listeners are encouraged to run the numbers, consider all associated costs, and make informed decisions to ensure homeownership is a positive experience rather than a financial burden.
Join us for an insightful conversation that empowers you to take control of your financial future and make informed decisions on your path to homeownership.
Talking all things money. Maya Fisher-French discusses the do’s and don’ts when it comes to your finances. To join the conversation send me an email via https://mayaonmoney.co.za/contact/
South Africa