According to a World Health Organisation (WHO) report, South Africa’s elderly population, aged 60 years or older, is projected to double from 7.7% in 2015 to 15.4% of the country’s population in 2050. This represents a jump from 4.2 million to an astounding 10.06 million people, many of whom rely on the State and relatives for daily living.
Coming off the back of World Senior Citizen’s Day in the third quarter, Nedbank is offering South Africa’s individuals approaching their senior years a trustworthy way to boost their savings and investments profiles as they navigate their retirement years.
“As people get older, they spend more time thinking about what they could have done differently in order to worry less,” says Sisa Cikido, Head of Retail Investments at Nedbank. “They also become anxious about the short time they have left to achieve their goals, and to ensure that those they leave behind will be taken care of, including seeking additional savings vehicles so they can optimize existing savings for a better life after retirement.
This is concerning, as a 2018 survey by Just Retirement Insights revealed that working South Africans have only managed to collectively save an average of R1.8 million each, which only allows them to draw R12 000 a month after retirement. If these retirees want to live more comfortably, they will need to at least double their nest egg to R3.8 million, which is entirely possible through a trustworthy, transparent investment vehicle with guaranteed earnings, at no cost.
While it is always best to start saving young, South Africans in nearing retirement age are also well-positioned to maximise the returns on their savings and investments through solutions that offer real value within a specified time frame, for example, a 15-year cycle for those aged 50 to 55.
In the face of rising costs and economic volatility, senior citizens should leverage a variety of incentives and instruments to provide for the passage into old age with as little financial stress as possible.
“It is never too late to adopt a more meaningful practice of saving and investing, especially in South Africa, which needs to increase awareness around a to align with world standards,” says Cikido. “With the economy currently in a technical recession, burdened with high unemployment and the basic standard of living moving further out of people’s reach, saving can serve to bring much-needed stability to volatile financial markets and people’s lives.”
