“But, Lisa, retirement is so far away…”, or “I’ll start saving when I earn a lot of money”, or “once the kids are out of the house, I’ll start preparing for retirement”. I hear this a lot!

According to our National Treasury, only 6% of our population will be able to afford to retire and maintain their quality of life at the same level as before retirement. That mean 94% of us will need to downgrade our lives to survive. That is a shocking statistic! And I don’t think we fully understand the gravity of this situation.

We work for forty years to support ourselves for a further forty years. So it’s simple math to calculate that we should be saving at least half of our salary to fund our future! In today’s money, you need at least R 3 million to retire on R 10 000 per month. Gulp!

So, I present you with a lifetime opportunity to solve this problem and live your best life yet.

Show notes

  • Only 6% of the population will be able to retire with enough money.
  • Will you live as part of the 94%?
  • Our corporate retirement framework is structured differently from previous generations.
  • Defined benefit fund – proportionate of final salary paid on long-term service.
  • Companies consumed the risk benefit of each employee. This would include managing:
    1. Longevity risk – the longevity of an employee
    2. Investment risk – the growth of funds to withstand bad economic times
    3. Inflation risk – the money would outperform inflation
    4. Behaviour risk – the prevention of frivolous overspending
  • When people started living longer, companies could no longer afford to structure their funds as such.
  • Define contribution funds – what you contribute to your retirement is what you get in return.
  • It takes a long time for these funds to build momentum with compound interest.
  • People that are coming into retirement now have no precedent set for them.
  • We work for forty years to live for a further forty years.
  • Money is finite. You will rob from your future self if you spend your money now.
  • Money takes time to grow – every cent put away TODAY is valued more than a cent at retirement.
  • HOW do we change the current situation and save for our future life?
  • Save more and spend less paradigm.
  • Build an additional income stream to compliment current expenses and contribute meaningfully to your retirement.
  • Sign up for my 16-week side hustle challenge!

Start your own side hustle

Join my next webinar on 11 September where I debunk the four myths of why people can’t have a side hustle.

Want to earn a passive income? Join my next 16-week side hustle course that kicks off on 25 September.

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