nottheaverageactuary

Actuarial news and views from Cape Town and beyond

Interview on Saving for Retirement

2 Comments

This video gives an easy, conversational introduction to problems surrounding savings in South Africa as well as tax-free savings vehicles. Life expectancy is on the rise and longevity risks pose a large threat to Retirement income sustainability. Only 29% of South Africans (based on a survey conducted by Sanlam in 2014) are able to maintain their standard of living in retirement. Dawie de Villiers, CEO of employee benefits at Sanlam, says that key issues relating to the core of the savings problem include: Education, Transferring of jobs etc. Savings incentives such as tax-free savings vehicles are imperative to solving the problem according to Dawie. He also speaks of the so called “Sandwich Generation” which relates to the previously posted article. Have a watch.

 

http://www.cnbcafrica.com/video/?bctid=3594840606001

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2 thoughts on “Interview on Saving for Retirement

  1. This touches on the classic behavioral problems with long term saving. An interesting feature of the SA market is that elsewhere in the world, the news would be “retirees pensions are too low” but in SA it’s “retirees are going to run out of money”. Unlike just about anywhere else in the world, SA retirees are not forced to buy an insured annuity. They can buy something called a “living annuity” which is brilliant marketing for “investment account” and has no longevity protection whatsoever.

  2. The problem of not saving enough for retirement will be solved now that we have tax free awareness.

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