If you’re invested in market-linked portfolios

Over the short term, you’ll probably experience negative returns. But don’t panic: history shows that markets recover over the medium to long term. History has also taught us that, in time, there will be recovery in the financial markets.

If you’re invested in retirement funds

Retirement fund portfolios are spread across various asset classes, such as bonds, property, cash and international assets, to reduce underlying risk. Your retirement savings are also protected (but not guaranteed) by the limitations of exposure to asset classes enforced by Regulation 28 of the Pension Funds Act. This helps by diversifying your portfolio. The most important Regulation 28 asset class limits are as follows:

• Equity 75%
• Listed property 25%
• Offshore assets 30%*
• Hedge funds 10%

*As prescribed by the South African Reserve Bank.
If you’re invested in a lifetime investment option, your monies are gradually moved from high-risk portfolios to lower-risk portfolios as from 6 years before your normal retirement date. Lower-risk portfolios have less equity exposure, which reduces the impact of the falling markets.

Please consult with a financial planner before you take any action regarding your savings and investments

One of the options that you can discuss with your financial planner is to leave your retirement savings until such time that the markets have recovered and you are ready to buy a pension. This means you postpone the payment of your retirement benefit in order to try to leverage from any gains when the market recovers. It may be a wise move to make, but remember: no one can accurately predict when the markets will recover. Other options could include taking a partial retirement only, or adopting a product strategy at retirement with your financial planner. You’ll need to weigh up the pros, cons and risks with a financial planner based on your specific needs.

Please consult with a financial planner before you take any action regarding your savings and investments

• Review where you can reduce your monthly costs, in order to reduce how much of your retirement savings you will be drawing on when you do retire. Every little helps, from cutting back on your entertainment expenses to reviewing your various subscriptions and debit orders to see what could be reduced.
• Consider post-retirement savings and investment products that are relevant to your life stage while offering the opportunity to further grow your wealth. Glacier by Sanlam offers such post-retirement products; speak to your financial planner to discuss these options.
• When you are retired, make the most of discounts and savings available to pensioners, for example seeking levy relief from your municipality.
• Keep yourself as healthy as possible by remaining active, social and by taking up a hobby or light exercise. One of your biggest financial drains as you age will likely be your healthcare costs; do what you can now to keep your body moving and your mind busy.

Please consult with a financial planner before you take any action regarding your savings and investments