RETIREMENT PLANNING

Introduction

Pre-Retirement Planning:

This process happens prior to retirement to make sure that you have sufficient savings at retirement to provide for future capital and income needs throughout your retired life. It consists of aspects such as setting goals, analyzing current provisions, the application of complex calculations and the construction of possible tax-efficient solutions to address any shortfalls.

Post Retirement Planning:

This process takes place when you decide to retire. It consists of aspects such as an analysis of current provisions, goal setting, the application of tax and other complex calculations, cash flow (Income) forecasts, construction of tax-efficient investment solutions etc. The main focus is to make sure that your provisions are wisely invested and managed to ensure that you have sufficient capital to provide for an income through your expected retired lifetime.

Frequently Asked Questions

How much money do I need to retire?

The amount of money needed for retirement will be different for everybody. This will all depend on your required post-retirement lifestyle. While some people will want to travel and spoil their grandkids, others will want a different lifestyle. The answer, of course, will be based on anticipated life expectancy and different needs during your retirement years. FAIRTREE PRIVATE CLIENT uses calculated cash flow estimates and a blend of strategies to forecast how much you need to invest today, in order to generate above-inflation growth to sustain you throughout your post-retirement years.

Contact us about setting up a Pre and/or Post Retirement Strategy

Watch this video on our Post Retirement Strategy:

How long will my money last?

This is one of the most frequently asked questions, and possibly the most challenging to answer. In order to answer it there are a number of things that need to be taken into account. You need to estimate things like: how long you will live, what types of medical expenses you will have, what rate of return you will earn on savings and investments, how much you will spend and what tax rates will be. Once you have projected these, you can estimate how long your money would last in retirement. However, rather than locking in that fixed “number”, one should take a number of scenarios into account that could further increase the accuracy of the estimate.

This type of planning will give you a better idea on what you could expect in the future.

Contact us about setting up a Pre and/or Post Retirement Strategy

Watch this video on our Post Retirement Strategy:

How much should I be saving each month for retirement?

There are a number of critical factors (term to retirement, current age, inflation, taxes, income drawdown at retirement, life expectancy, current provisions, escalation rates) that one needs to take into consideration when answering this question. For example, someone who begins their monthly retirement savings at 45-years-of-age, will need to contribute larger monthly amounts, than someone who started saving toward retirement at 26. Personalised calculations are required to better determine this answer.

Contact us about setting up a Pre and/or Post Retirement Strategy

Do a basic retirement calculation using our tool.

“Because with us, it’s all about the journey.”

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Fairtree Private Client (Pty) Ltd is an Authorised Financial Services Provider. (FSP 12179)