Retirement planning – day one, not one day
To navigate this new, dynamic retirement journey, we need to adopt fresh ways of thinking.
Retirement was often seen as a distant event happening in the far-off future.
Many viewed it as a well-earned reward for a lifetime of hard work. But times have changed, and so has retirement.
Gone are the days of a smooth runway leading to retirement, where a single job provided a pension fund until age 65 and a guaranteed income for life.
Today’s retirement journey is far more complex, filled with unexpected speed bumps, potholes, and sharp corners.
It is dynamic, ever-changing, and requires a new way of thinking.
According to the recently released FNB Retirement Insights survey, there was an understanding that additional factors, such as generating more income, having financial discipline, seeking expert advice, and conducting thorough research, played crucial roles in making informed retirement decisions.
Participants who felt they were on track with their retirement planning shared common characteristics.
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They had long-term retirement plans in place, sought expert advice, reduced their debt, and diversified their sources of income.
Bheki Mkhize, the CEO of FNB Wealth and Investments, echoed this sentiment and highlighted a growing recognition that retirement planning went beyond simply holding financial products.
“Traditional retirement models no longer apply in a world where we live longer, retire later, and seek fulfilment in our post-career years.
“We are exercising more, pursuing passions, and living life with renewed energy. But along this journey, many of us encounter setbacks, such as job losses, illnesses, or even global pandemics, as well as milestones and successes.
“The road to retirement is no longer a linear path; it is a winding, unpredictable one.”
Building a retirement plan is vital. According to the survey’s findings, about 49% of the individuals said they could not afford to save for retirement because they spent their entire disposable incomes on other financial priorities.
Mkhize added, “Globally, retrenchments, career changes, entrepreneurial endeavours, and family responsibilities have reshaped our experience of the retirement runway. These experiences can have negative and positive impacts on our retirement savings.
They may deplete someone’s nest egg or, conversely, contribute to its growth through successful ventures.
“Today, the entire journey to retirement is, in fact, a crucial factor in determining our retirement outcomes.”
“To navigate this new retirement journey, we need to adopt fresh ways of thinking.
“Drawing on the wisdom of past retirees, we can craft a mindset that embraces the changing landscape of retirement. It is no longer an end-of-life task but a lifelong endeavour that needs to begin as early in our lives as possible.
“Retirement planning is not just about accumulating funds in a savings account; it encompasses all elements of financial well-being. It requires an integrated approach considering our unique circumstances, challenges, and goals. There is no one-size-fits-all solution. Every individual’s retirement journey is different, and it is time for the industry to acknowledge and support this diversity.
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“We understand the need for such a paradigm shift. We recognise that the retirement journey is no longer a linear progression but a dynamic adventure.
We believe in starting the journey on day one rather than postponing it to one day in the future.
“By taking a holistic view of financial planning and retirement readiness, we help individuals embrace the highs and lows of their dynamic journey, ensuring better retirement outcomes,” said Mkhize.
Perceptions of the retirement industry need to shift to support individuals on this transformative journey.
The findings of this first FNB Retirement Insights Survey confirmed there was an urgent need for this paradigm shift.
“Embarking on this new era of retirement planning should be a goal for each of us.
“Together, we can rewrite the narrative, redefine success, and embrace the dynamic nature of the journey to build a fulfilling retirement outcome that reflects the uniqueness of each individual.
“Day one is here. Let us start planning for the retirement all South Africans deserve,” concluded Mkhize.
