Guidance on early retirement for public servants

Sanlam Limpopo hosted an information session targeting an invited group of local public servants to provide information on the early retirement options that’s been announced by the minister of finance Tito Mboweni during his 2019 budget speech. Sanlam’s Regional Key Account Specialist, Madelyn Scheepers extended a word of welcome to the guests, of which most were in the age group that may soon qualify for retirement from the Government Employees Pension Fund (GEPF).
Dinash Pillay, Business Development Manager was the key note speaker and emphasised that the decision of a member of the GEPF to take retirement is final and should go along with a plan that will fulfil the individual’s unique needs. He mentioned that there are different options on taking up the offer of early retirement. To transfer your retirement money to private pension is an option but it will depend on your unique circumstances and therefor people must ensure that they consult financial planners for proper advice before taking the final decision
“The longer you work, the longer you live,” Pillay stressed and explained that a huge percentage of pensioners pass away within five years after retirement and in many cases due to depression and loneliness. “Mental fitness is important and you must have a reason to wake up every morning,” Pillay said.
“Concerns about financial security is one of the major threats for pensioners and it is therefore imperative to do proper planning and take informed decisions to ensure financial stability and a steady income for you and your dependants if necessary,” Pillay warned the guests not to use pension money to invest in business, and added that research indicates that only a small percentage of civil servants who engage in business ventures, are successful.
“A guaranteed income, capital to settle debts, growth of capital to counter inflation and the desire to leave a legacy to your dependants are the major factors to consider when you make your choice,” Pillay concluded.
Willem Barnard, Sanlam Limpopo’s Business Manager had the final word and advised the guests to take advantage of the services provided by Sanlam’s registered financial advisors. “Our collection of financial solutions has been designed to span a lifetime and to fulfil the needs every life stage may bring – whether you are focusing on the creation or the preservation of your wealth.”

Story and photos: BARRY VILJOEN
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