Your Future - Retirement Archives

Beyond the 9-to-5: The Art of Preparing for Retirement

Retirement marks a significant transition in one’s life. It’s a time to reap the rewards of your hard work, pursue new passions, and focus on your mental wellbeing. As you embark on this new chapter, here are some valuable tips to help you prepare mentally for a fulfilling retirement.

Reflect on Your Goals:
Take time to ponder what you want from your retirement. Whether it’s travelling, volunteering, or simply enjoying more time with loved ones, having clear goals will give your retirement purpose and direction.

Financial Planning:
Secure your financial future by carefully planning your retirement savings and investments. Knowing that you have a stable financial foundation will ease worries and contribute to your peace of mind.

Create a Daily Routine:
While retirement offers freedom, having a daily routine can provide structure and a sense of normalcy. This can help combat the feeling of aimlessness that some retirees experience.

Stay Physically Active:
Regular exercise is not only beneficial for your physical health but also for your mental wellbeing. Engaging in activities like walking, swimming, or yoga can reduce stress and boost your mood.

Maintain Social Connections:
Retiring doesn’t mean isolating yourself. Stay connected with friends and family, and consider joining clubs or groups that align with your interests. Social interactions are helpful for mental wellbeing.

Pursue Lifelong Learning:
Keep your mind active by learning new things like taking up a new hobby, enrolling in courses, or reading. Continuous learning enhances cognitive function and keeps your mind engaged.

Set Boundaries:
Learn to say no and manage your commitments wisely. Retirement should be about enjoying your time, not overloading yourself with obligations.

Embrace Change:
Be open to change and adapt to your evolving interests. Embracing new experiences can be invigorating and keep your mental faculties sharp.

Strengthen Bonds with Loved Ones:
Retirement provides a unique opportunity to nurture and deepen your relationships with your partner, children, and grandchildren. Spend quality time with your loved ones, create lasting memories, and build stronger connections. Consider planning family gatherings, game nights, or even regular dinner dates with your significant other. These moments of togetherness can be incredibly rewarding for your mental wellbeing.

Rediscover the Comforts of Home:
Your home is your sanctuary, and retirement allows you to appreciate it fully. Take the time to declutter, redecorate, or renovate if needed. Create a peaceful and inviting space where you can relax, read, or pursue hobbies. Enjoy the simple pleasures of home, such as gardening, cooking, or watching your favourite films. A harmonious and comforting home environment can contribute significantly to your overall sense of happiness and wellbeing.

Retirement is a golden opportunity to focus on your mental wellbeing and enjoy life to the fullest. By planning ahead and adopting some of these tips, you can ensure that your retirement years are filled with contentment, purpose, and personal growth.

Remember, it’s not just about the destination; it’s about the journey towards a fulfilling retirement.

If you find the transition to retirement challenging, don’t hesitate to seek help from a therapist or LifeAssist counsellor. They can provide valuable support and strategies for coping with any emotional challenges.

zara2023-10-02T06:30:48+00:00

Why is a Will important?

A last will and testament is a legal document that lets you decide what happens with your belongings after you die. Yet, many people don’t have one. You may think you don’t have enough assets, or assume that your loved ones will automatically get everything you own. But this isn’t always true.

Save time, money, and stress for your loved ones

When you die without a will, you leave important decisions to the local courts. This can become a long, drawn out, expensive process causing trouble for your loved ones. For example, the courts may decide to sell your house to divide the proceeds to your family, leaving your current spouse without a home.

Streamline this process with a will and choose someone responsible to handle your estate (called an “executor”). The executor’s responsibilities are to make sure your wishes are carried out and all your affairs are taken care of. Without a will, your family will have to guess what your final wishes were. If there are complicated family dynamics, they won’t always agree. The lack of clarity may cause tensions which can last a lifetime.

The power of choice

With a will, you decide who gets your assets, and who to exclude, for example, an estranged spouse. A surviving parent will usually be given sole legal custody if one parent dies. But if both parents pass, a guardian will need to be responsible for all your children’s daily needs, including food, housing, healthcare, education, and clothing. If you don’t nominate a guardian in your will, a court will have to choose one for you. This could mean that someone you might not want, would be raising your kids. You can also make sure that a trusted person takes care of your pet after you die and even leave them funds to provide for your pet’s care. You may also decide to leave a positive mark on the world after you pass, by donating funds or assets to charities or causes that you believe in. You can include this legacy in your will.

It’s simple

It’s easy to make a will and many companies, such as banks, or insurance firms offer the service free of charge. You don’t necessarily need professional help to prepare a valid will unless you have a large or complex estate. Once you’ve drafted the document, it needs to be witnessed, usually by two adults of sound mind who know you well. Make sure that your family or executor knows where your will is and update it over time as your needs and the people in your life change. This will give you peace of mind.

Call LifeAssist to speak to a legal specialist to help you draw up a will. This service is at no cost to you.

zara2022-10-31T06:10:17+00:00

Retirement planning: from an emotional perspective

Many of us spend years picturing our ideal retirement. We dream about not having to get up early, spending more time with family and friends, enjoying hobbies, or simply having the freedom to relax. We know we must plan our finances for retirement, but often ignore the emotional challenges. Preparing for your retirement can help you embrace this new life stage bravely and with excitement.

Common challenges of retirement include:

Losing your identity. If you’re no longer an employee, who are you?
Feeling anxious at having more time on your hands, but less money to spend.
Finding it difficult to fill the extra hours with meaningful activity.
Feeling isolated without your co-workers.
Feeling less useful, important, or self-confident.
Feeling lost and unsure how to adjust your routine

Tips to help you prepare

Plan what you’re going to do with your extra time and how you’re going to structure your days. When you’ve been working very hard, you’ve probably not had any time for hobbies. Start thinking about a hobby or interest for your retirement. It’s important to keep routines so decide in advance what time you’d like to rise, have meals etc.
Set new exciting goals so that you are not just retiring from something, but to something as well. Consider volunteering or studying. Donating your time and effort means that you can pass on some of the skills you’ve learnt. You may even consider doing a part-time job to bring in extra income and meet new people.
Many of us define ourselves by what we do for a living. How can you define yourself in a new way? If you were once a bookkeeper, for example, you could now be a mentor, grandparent, student, artist, or chef.
Start strengthening your social network because your social circle gets smaller when you leave work. Research clubs, evening classes, or list people you’ll invite for coffee.
Make sure your family is on the same page with your retirement. For example, agree in advance how many times a week you get to see your grandchildren, ask your spouse about their expectations for time alone etc.
Keep your brain sharp by doing the daily wordle (www.nytimes.com), learning how to play bridge, chess, or a musical instrument. Try new things with the activities you enjoy. For example, experiment with new plants or growing methods if you like to garden.
Caring for a pet can also help you to maintain a sense of purpose and make you feel less alone.

Chat with a counsellor at LifeAssist to help you map out the transition into your golden years. There are legal advisors that can give you advice on your will and estate.

zara2022-09-30T09:05:08+00:00

Tips to Start Your Planning for Retirement

It’s never too early to start saving for retirement – but if you’ve left it a little late, don’t panic! Here are some tips to help you save towards a financially secure future.

If you don’t have a lot to save, starting small is better than not saving at all. Any amount of savings helps. Saving a little each month can make a big difference, as long as you’re consistent. This will also help you get into a habit of saving.
Don’t cash in your savings when you change jobs. If you have a pension or provident fund attached to one job, don’t withdraw it and spend it – rather have it moved over to your next employer or invest it privately in an appropriate retirement funding investment, and keep saving.
If you don’t have a pension or provident fund, start contributing to a retirement annuity. This is a private retirement savings fund that in some cases can be tax-deductible.
If you get a bonus, a raise, a 13^th cheque or any other type of unexpected extra money, invest at least some (if not all) of it into your retirement savings, rather than spending it.

zara2021-06-28T14:29:39+00:00

The Five Pillars of Personal Finance

Careful planning and smart choices are essential to achieving financial freedom. Experts say there are five pillars to good financial wellbeing. Following these five strategies will help you to make the most of your income, plan for a comfortable retirement, and leave a lasting legacy for the next generation of your family.

Are you practising these five healthy financial habits?

Income planning:

This means understanding your income and expenses, to decide how much you can save towards your retirement each month. Income planning also involves setting a budget and looking for ways to reduce expenses and thus maximise savings.

Investments:

Investing your money in assets that will be worth more in the future will help you to build towards securing money for your future.

Insurance:

Paying insurance every month helps you to protect yourself and or your family against the cost of unexpected events like accidents, illness, theft and or in the worst case, death. When budgets are tight, many people are tempted to cancel their insurance policies, but this can lead to much bigger expenses down the line.

Tax planning:

You can reduce the taxes you’re required to pay by being strategic and taking advantage of beneficial tax laws and deductions.

Estate planning:

This means deciding what will happen to your assets after you pass away. Your estate includes everything you own, from your bank accounts, investment accounts and life insurance, to property and other possessions.

It’s never too early to start thinking about your financial wellbeing. What steps can you take to start saving more and investing in your future?

zara2021-05-29T08:35:58+00:00

Preparing for an early retirement

Whether early retirement is planned or unexpected, it looks different for everyone. Either way, you should have a reliable plan in place so that you can make informed decisions, should you have to consider or go down this road:

Prepare a budget for retirement so that you can have a good idea now, what you need to plan for expenses and income-wise.
Try to start sticking to a budget now as if you were in retirement, that way it will help you get used to living on less income.
Entering retirement debt-free is beneficial, so pay off debt if you can.
Investigate any possible financial relief, grants, or tax reliefs that may be available to you.
Speak to a registered financial advisor for guidance on how best to prepare now, for retirement.

zara2021-03-24T14:21:32+00:00

Elder abuse

It is heart breaking when we hear that elderly people are abused and neglected on a daily basis. It’s good to know what to look out for and what to do about it.

Who are the abusers?

In most cases elder abuse and neglect occur within a relationship of trust. The victim and the abuser are people who know each other well. Statistics from services worldwide show that the majority of abusers are members of the older person’s own family: sons, daughters, in laws, siblings, grandchildren or partners. Other abusers include people employed in positions of trust, such as residential facility staff or paid caregivers.

Definition

Elder abuse occurs when an aged person experiences harmful physical, psychological, sexual, material/financial or social effects caused by the behaviour of another person with whom they have a relationship implying trust. Elder neglect occurs as a result of another person failing to meet the physical and emotional needs of an older person.

Types of abuse and neglect

Several types of abuse can be present, sometimes at the same time. These include:

- Physical, which is the infliction of physical pain, injury or force, for example being hit, slapped, or tied in a chair

- Psychological/emotional, which is behaviour such as verbal abuse that causes mental anguish, stress and fear by calling names, blackmailing, playing mind games, etc

- Sexual, which is sexually abusive and exploitative behaviours involving threats, force or the inability to give consent

- Material/financial, which is illegal or improper exploitation and/or use of funds or other resources, for example taking money or possessions

- Active neglect, that is conscious and intentional deprivation

- Passive neglect, which is the result of the carer’s inadequate knowledge, infirmity or lack of trust in prescribed services.

Advice and help

If you are worried about your own situation, or that of an older person or relative, contact the elder abuse and neglect service (Halt Elderly Abuse Line: National 0800 003 081) to talk about the situation or suspected case of abuse and/or neglect. You may also contact the service for general enquires on the issue, including the availability of education and training sessions in your area.

Abuse can also be reported to the Department of Social Deveopment at its closest office or at the Social Development toll-free helpline on 0800 60 10 11. You should also report the abuse at your local police station is it is a violation of under the Domestic Violence Act.

Sources

Reporting abuse of older persons. Retrieved from https://ossafrica.com/esst/index.php?title=Reporting_abuse_of_older_persons
www.actiononelderabusesa.co.za

(Revised by M van Deventer)

2021-04-12T07:54:34+00:00

Are you preparing for retirement?

So many people are looking forward to retirement only to find out that it is not the “golden years” that they expected. Planning ahead of time is the only way to ensure a happy retirement.

Although financial planning is probably the part of retirement planning with the greatest influence, it is by no means the only one. It is as important to become emotionally and physically prepared for retirement.

Importance of planning ahead

The support landscape in South Africa has changed dramatically since the last century. It has become very important for all South Africans to maintain independence for as long as possible. Yet, according to statistics, by the age of 65, of every 100 people who are now 25 years old:

- 35 will already have died

- 10 will be on a state pension

- 20 will still be working

- 30 will be financially dependent on their families

- Only 6 will be financially independent.

A state pension today (2010) amounts to R850 per month – hardly a life-sustaining sum!

People today live longer than ever before. Centenarians will be common in the years to come, but the question remains: what will be their quality of life? The best policy to ensure a quality life is to start while still young by living a healthy lifestyle, planning for sufficient funds and working on one’s emotional and spiritual well being.

Apart from living longer, people nowadays also tend to retire earlier, leading to an extended retirement period.

Pre-retirement years are most important

The last couple of years before retirement are the most important ones in which to review and adapt your retirement planning according to your own circumstances and expectations. This is the time to take stock of your expected needs and to compare them with your expected income.

Both partners in a marriage should participate in the planning because the wife’s life expectancy is longer than that of her husband.

Where to start

Use the five points below to draw up a list of your own goals for the retirement years. Add some of your own.

- Decide on the type of life you want to lead once you retire.

- Do you want to travel the world, refurnish your house, move to a place at the coast?

- Take a good look at your health. Is it likely that you will need extra health care at or shortly after retirement? If you are placing yourself at risk with unhealthy behaviour, remember that it is never too late to replace bad habits with healthy ones.

- Cultivate relationships outside of your workplace and make new friends apart from your colleagues. Once you retire, you will see less of these people and more of family and friends.

- Cultivate an interest in things other than your work. After retirement (and having done all the outstanding household chores!), people often find it difficult to fill their time meaningfully.

- Prepare yourself emotionally for a changed role in life.

Our Employee Wellbeing Programme (EWP) is available 24 hours a day if you want to know more about retirement planning.

2021-04-15T10:50:23+00:00

Do you look forward to retirement?

Retirement can be a massive step in life that can affect your emotions, finances and even your marriage, but you may be surprised to learn how many people apparently approach the big day with little or no thought or preparation.

Start a retirement plan

Research has shown that only three out of every ten South Africans can retire financially independent at the age of 55 or 65. If you’re already saving for your retirement, keep going, but if you’re not saving, it’s time to get started. Start small if you have to and try to increase the amount that you save each month.

Aim to have a car for yourself and your partner paid off by the time you retire to eliminate some of your financial burden. Paying off a home will also be a great benefit and get rid of all your credit card and consumer debt as well. If you decide to purchase a home for retirement, think about upkeep and accessibility. For instance, you may need to build a wheelchair ramp, access a lift, or have wider doorways. As you probably won’t want to cut the lawn, buying a home with a small yard or a unit in a retirement village might be the better choice.

Find interests and hobbies that are close to your heart and establish personal ties that aren’t based exclusively on your professional work. This is especially important if you’re the type of person whose social circle is limited mainly to work-related relationships and who gains your sense of self from your position or profession, as you could end up feeling lost after retiring.

No matter what you do in your retirement, your marriage is going to be affected by the transition. Those who are happiest in retirement, tend to nurture their relationships. Make sure that each partner is happy with a decision before moving ahead and don’t make major decisions in a hurry. Moving abruptly to that sunny spot in Australia may not be the dream you imagined.

Sources
www.readersdigest.co.za
www.retirehappyblog.ca
www.squidoo.com

2021-04-12T13:28:09+00:00

Housing needs for your retirement

When buying into a retirement housing scheme, it’s important to scrutinise the form of ownership because your legal rights and obligations vary greatly with the different types of schemes.

Retirement villages (or schemes) can be structured as follows:

Sectional-title ownership

As the owner of your unit, you’ll receive a title deed and must pay transfer duty and conveyance costs. The developer carries no responsibility for the ongoing maintenance and cost management once the development has been built – it’s up to the residents to do so. Obtain as much information as possible about the body corporate, its finances and its proposed activities. For instance, establish which legislation takes precedence – the Sectional Title Act or the Housing Schemes for Retired Persons Act.

Share-block ownership

By purchasing a number of shares in the company, you’ve the right to use the residence and complex’s facilities. The transfer of shares is similar to a sectional title or conventional transfer of ownership. Your share-block transfer is not registered in the Deed Registry, but a sale agreement is nevertheless required and transfer duty is payable to the Receiver of Revenue. The Share Block Control Act 59 of 1980 regulates the operation of a share block scheme. While you don’t own your unit, you can play a role in the management of the scheme through a general meeting of shareholders. However, should the company go insolvent you’ll be left with worthless shares in an insolvent company.

Life rights

You and your partner have the right to occupy your cottage or flat for the rest of your lives, but you won’t own it. This is probably your cheapest option as there’s no transfer duty or tax payable. When the occupant dies (or decides to leave the unit) his or her heirs or the occupant is paid back what was paid for the unit. Depending on the particular contract, 25% of the profit after costs (holding back some of the profit enables the owner to refurbish the unit) is sometimes also returned. The Housing Development Schemes for Retired Persons Act requires the developer to provide a “statement of basis” upon which any levy is to be calculated as well as an estimate, for a period of two years in advance, of the amount of the levy. In other words you enjoy levy transparency and the ability to plan around predictable costs.

Full-title ownership

The property is registered in your name and you are liable for services such as rates and levies. A homeowners’ association maintains the public areas in the retirement village and provides security and other services.

Sources
www.property24.com
www.saarp.co.za
www.seniorservice.co.za

Revised by M Collins

2021-04-01T14:44:13+00:00

Your Future – Retirement