“The question isn’t at what age I want to retire; it’s at what income”
George Foreman, Two-Time Boxing Heavyweight Champion of the World.
Expats who have not financially emigrated from South Africa, and are planning to retire abroad and banking to live off the proceeds of their South African retirement annuities or pensions when it matures – need to do some thinking…
- Count how many years before these retirement investments mature.
- Add the compound depreciation of the Rand relative to major currencies.
- Factor in the increased cost of living brought on by inflation.
- What will be the Dollar or Sterling worth of your one-third lump sum?
- The purchase power of your monthly annuities in local currency?
Then compare apples with apples…the bottom line? Don’t plan on buying Dollar or Pound Sterling with South African Rand because the currency is in depreciating mode as we speak! What miracle will need to happen to change this reality one, two or three years from now?
A smart way to improve your retirement readiness:
- Decide where in the world it is you would like to retire.
- Don’t wait till age 55 for your retirement investments to mature.
- Expats are allowed to cash-in their retirement policies before the accepted retirement age and transfer the full capital value abroad.
It turns now into a good time to think about your retirement income and to plan for the one-day we all know is around the corner.
To put into perspective what your retirement investment is worth in Dollar or Pound Sterling in today’s money get your free personal South African financial report to start improving your retirement readiness!
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