Just SA

Just Retirement Insights 2024 asked: ‘If your retirement money is enough for now, but may run out in the future, who will you rely on to provide support?’ 🔺 46% of respondents said they would rely on the government, up from 27% in the 2022 study. 👪 39% indicated they would rely on their children or grandchildren. This indicates a growing burden on the state and family, highlighting the retirement income crisis in South Africa. Retirement savings must work diligently if retirees are to avoid financial dependence. Furthermore, 84% of respondents said their retirement income must keep pace with inflation annually. And historically, inflation in South Africa has only been below 5% in ten of the last 33 years. Despite these challenges, it’s not all doom and gloom. At Just SA, we believe that financial advisers play an essential role in helping retirees to secure a dependable, sustainable retirement income. Read the full report here: >> https://lnkd.in/dqcGJdjn #JustSARetirementInsights #RetirementPlanning #FinancialSupport #EconomicChallenges #SecureRetirement

The Just Retirement Insights 2024 revealed that 39% of people in or near retirement still needed to calculate their financial retirement needs. Among these, 20% cited insufficient funds as the cause and 50% said they don’t know how to! With high unemployment and increasing living costs in South Africa, limited income is a genuine challenge, affecting retirement planning significantly. The survey results further show that lower-income households are less inclined to plan for retirement.: ☑️ 3 out of 10 households earning less than R6000 monthly have retirement plans. ☑️ 6 out of 10 households earning between R10 001 and R20 000 monthly have retirement plans. ☑️ 8 out of 10 households earning more than R50 000 monthly have retirement plans. At Just SA, we emphasise that retirement planning is essential and achievable, regardless of savings or financial complexity. A secure lifetime income remains a crucial retirement goal. Read the full report here: >>https://lnkd.in/dqcGJdjn #JustSA #RetirementInsights #RetirementPlanning #SecureFuture

Did you know? Only three out of ten individuals consider the impact of cognitive decline when they plan for retirement. According to our tracking study, the proportion of respondents planning for cognitive decline has remained stagnant over the years, suggesting a pervasive sense of misplaced confidence. Deteriorating mental and physical health in retirement is a double whammy: 1️⃣ It can impact how well clients manage their finances. 2️⃣ It requires ongoing medical care, often with a hefty price tag that can significantly impact clients’ financial stability. The report also explores the probability of longer life expectancies, reminding us that it's crucial to recognise that living longer increases the risk of dementia, a disease predominantly affecting the elderly. Yet, only some consider its potential impact on financial decision-making in late retirement. Encourage your clients to consider how ageing affects all aspects of their health and to factor this into their financial plan. Read the full report here: https://lnkd.in/dqcGJdjn #JustSA #RetirementInsights #RetirementPlanning #CognitiveDecline

Your clients could live until the age of 100. But will their money last? Just Retirement Insights tracks the South African retirement market. Respondents’ views on their life expectancy reveal that: ☑️ Many individuals in the 60–70 age group underestimate their lifespan, not realising that longevity trends could see them living much longer than they expect to. ☑️ This is worrying, as many people will need to decide in this decade what retirement income solution is best for them. Best practice suggests planning up to age 95 for men and 100 for women because these are the ages most likely to be reached. Interestingly, these probabilities remain consistent regardless of current age. For example, a 60-year-old male and an 80-year-old male both have approximately a 10% chance of living to 95. Read the Just Retirement Insights Report to learn more: >> https://lnkd.in/dqcGJdjn #JustSA #RetirementInsights #RetirementPlanning #LifeExpectancy

Just Retirement Insights 2024 asked respondents to rate their level of confidence that their money, despite inflation, will cover their monthly expenses in retirement even if they live until the age of 100. Answers to this question showed confidence levels much higher than in previous years – 23% were ‘Really Confident’ and 40% were ‘Confident’. This could indicate that people have recovered somewhat from the adverse economic effects of the COVID years and now have plans in place to ensure they have a sustainable retirement income. However, it could also indicate an unjustified level of self-confidence in retirement planning. Key findings: ☑️ Average savings have increased over the years, but retirees are still about 40% short of the ideal target of 25 times annual income. ☑️ 80% of respondents plan to use their retirement savings to pay off debts like credit cards and mortgages, which is concerning given the shortfall in savings. ☑️ Many respondents underestimate their life expectancy, a crucial factor in retirement income planning. Read the full report here>> https://lnkd.in/dqcGJdjn #RetirementPlanning #RetirementSavings #JustRetirementInsights #JustSA

Did you know? Just SA’s 2024 Retirement Insights study found 39% of respondents haven't calculated how much money they'll need annually in retirement. Of those, over half (54%) don't know how to make this calculation —a significant increase from 2022, when only 28% of respondents admitted to a lack of knowledge. When faced with uncertainty, many people may choose to ignore it which can have disastrous consequences. On the upside, admitting you don’t know how to plan for retirement is the first step. 💡 Seeking professional advice from a financial adviser is recommended. However, the results from the survey reveal that only 30% of respondents have or intend to ask for financial advice. 23% of respondents who have made no calculations only plan to do so closer to retirement. But Just SA believes that getting professional help sooner rather than later is essential for a successful retirement. Read the full report here: >> https://lnkd.in/dqcGJdjn #RetirementPlanning #JustSA #RetirementInsights #SecureFuture

Many retirees choose a pure living annuity and draw down too much. With lower-than-expected market returns recently, more and more living annuitants find themselves in a position where their income is not sustainable. Bjorn Ladewig chats to Citywire’a Jaco Visser about why the option of blending, or converting a living annuity into a life annuity has become more popular.

Confidence in your skills and abilities to plan for retirement is a subjective measurement, and self-confidence can sometimes be unjustified, as was discovered in Just Retirement Insights 2024. The study showed that 60% of respondents set goals for retirement. While this is an improvement of 20% compared to the 2018 survey, it still means that 40% aren’t setting goals, which is far too high given South Africa’s retirement income crisis and financial vulnerability. Just over half of the respondents surveyed (56%) said that they save money and plan for the future. This could be interpreted in two ways: at least more than half are planning, which is encouraging, but 44% are not giving any thought to building a nest egg for retirement. Not surprisingly, given these statistics, the appetite for risk is low and many retirees would be unable to withstand a market crash. 46% of respondents are averse to taking any risks in retirement, and 27% can’t afford to lose anything that they have set aside for retirement without it severely impacting their retirement plans. Poor planning and lack of saving for retirement can lead to financial vulnerability. Seeking professional financial advice is recommended, but is this a common course of action? Read the full report here: >> https://lnkd.in/dqcGJdjn

📊 What is Just Retirement Insights? Just Retirement Insights is a tracking study conducted by Just SA to help us better understand the South African retirement market and people’s retirement needs. Today, we’re excited to share the findings from the 2024 study! Three predominant retirement themes emerged: self-confidence, retirement confidence and contextual confidence. The 2024 survey results suggest that retirees’ attitudes about their skills and abilities to secure a sustainable retirement do not always align with reality. Over the next few weeks, we will highlight some of the key findings which might help when planning for a better later life. The study was first conducted in 2015. Just SA re-launched the study in 2018, with a follow-up in 2019. An interim study in 2020 specifically assessed the impact of COVID-19 on retirement planning. A full tracking study was conducted in 2022 (following on from 2015, 2018 & 2019) and again in 2024. For more information visit https://lnkd.in/dqcGJdjn

Have you ever wondered what the difference is between a beneficiary and a dependant? 🤔 ✨ Beneficiary: An individual(s), trust or charity designated to receive assets or benefits from financial accounts or insurance policies after your passing. Beneficiaries may or may not have a personal relationship with the person who has named them in a legal document/contract. ✨ Dependant: Dependants are usually part of a family unit and rely on you financially as their primary source of income, such as children or a spouse. It can be important to understand the key distinctions between these two because they may have certain rights and entitlements, and their roles and responsibilities may differ significantly. Our comprehensive Jargon Buster aims to help you understand financial jargon so you can make more informed decisions for yourself and your loved ones. Read our full Jargon Buster here: >> https://lnkd.in/dZ8EE8-u #JargonBuster #RetirementPlanning #EstatePlanning #JustSA