A conference focusing on public servants and their retirement provided scores of attendees with insightful information about financial planning and management to cope with the realities of post-retirement living.
This annual initiative by Jenwil BlueStar Financial Advisory Services, in partnership with Glacier by Sanlam and the Central24 title Express, was presented in Bloemfontein on Wednesday (16/08).
Jenwil BlueStar held this conference on financial well-being with the aim of empowering members of the Government Employee Pension Fund (GEPF) with knowledge to effectively manage their money post-retirement. The financial planning entity’s highly qualified advisors discussed the different retirement options for public servants and provided in-depth information to achieve financial longevity and cope with the existing realities after retirement.
The panel included Dinash Pillay, the national business development manager at Glacier by Sanlam, Herman Sandrock of Fairtree, and Prof. Eben Mare of Sanlam Investments. The discussions and presentations focused on the realities informed by South Africa’s current socio-economic status, which sees citizens struggling to make ends meet.
Presentations revealed that 51% of South Africa’s retirees cannot meet their financial commitments, with 33% entering retirement debt, and the same number not having enough funds to cover their medical expenses.
Pillay further revealed a bleak picture pertaining to the retired South African population.
“About 61% of retirees are unable to save for a rainy day after retirement due to pressures of high expenses. In addition, 53% of retirees still have adult dependants to support.
“Factors influencing the financial predicament include high inflation and high interest rates. Given these realities, it is of the utmost importance for people to make wise decisions in order to meet their needs,” said Pillay.
He further advised on the importance of adjusting one’s lifestyle to navigate this hard-pressed socio-economic situation.
Those looking to resign and leave the GEPF were warned against risks such as high taxation and the temptation to overspend and deplete their capital.
Pillay explained the benefits of staying with the fund, as well as the disadvantages of making any rash decisions.
Sandrock explained that making the correct financial decisions was important, while Mare indicated that obtaining legal advice to invest in legal entities goes a long way in achieving financial longevity.
