About to Retire | Navigate Retirement | Sanlam Savings
Skip Ribbon Commands
Skip to main content

About To Retire About to Retire | Navigate Retirement | Sanlam Savings

Invest

Advice

Service

Invest Online Back

Call me back

Email us

Back

Call me back

Email us

Email us

Skip Navigation LinksNavigate Retirement

I’m About to Retire and I’m Scared

Uncertain times are tough for everyone but if you’re about to retire, you may find it even more challenging. So, what can you do? We know it might be tempting, but converting your investments to cash is not necessarily the best option.

How Sanlam experts are navigating these challenges

Why its important to personalise your retirement plan

Video

Author: Glacier by Sanlam

Why it’s important to personalise your retirement plan

Four Tips to consider if youre retiring during market uncertainty

Video

Roenica Tyson: Product Manager at Glacier by Sanlam

Four tips to consider if you’re retiring during market uncertainty

Audio - Why one retirement solutions may not work for you

Audio

Rocco Carr: Business Development Manager at Glacier by Sanlam

Why one retirement solution may not work for you

Still uncertain? Get in touch
with a financial planner

Get Advice

Top Qs your peers asked, answered, in under 5 minutes

It’s important not to make hasty decisions based on fear. Switching to a lower risk portfolio can lead to ‘locking in losses’. Remember, cashing in at a low point makes a paper loss a real loss.

If you have a retirement savings plan and you are invested in a lifetime investment option, your money is moved from high-risk portfolios to lower-risk portfolios six years before your normal retirement date. Lower-risk portfolios have less equity exposure, which reduces the impact of the falling markets. The lifetime investment option is constructed using reliable investment principles, based on a long-term investment approach.

Whatever is happening in the markets, you need an investment strategy that’s aligned with your goals, your appetite for risk, and how long you have until you hope to retire. These are all personal and unique to you. The best way to plan for this, review this and to deal with uncertainty is through proper financial planning, together with patience and persistence with your investment strategy.

Making emotional decisions, based on short-term market fluctuations, may result in more harm than good and destroy the long-term value to your savings.

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

It’s important not to make hasty decisions based on fear. Switching to a lower risk portfolio can lead to ‘locking in losses’. Remember, cashing in at a low point makes a paper loss a real loss.

If you have a retirement savings plan and you are invested in a lifetime investment option, your money is moved from high-risk portfolios to lower-risk portfolios six years before your normal retirement date. Lower-risk portfolios have less equity exposure, which reduces the impact of the falling markets. The lifetime investment option is constructed using reliable investment principles, based on a long-term investment approach.

Whatever is happening in the markets, you need an investment strategy that’s aligned with your goals, your appetite for risk, and how long you have until you hope to retire. These are all personal and unique to you. The best way to plan for this, review this and to deal with uncertainty is through proper financial planning, together with patience and persistence with your investment strategy.

Making emotional decisions, based on short-term market fluctuations, may result in more harm than good and destroy the long-term value to your savings.

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

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

Saving for Retirement

By investing a lump sum or some of your salary each month, you can grow your money over time so that you can retire comfortably. No matter how much you need to or can afford to save, the most important thing is to stay committed to saving.

More

Retirement Preservation

If you are retrenched or move jobs, you can maintain your retirement plan by moving it into a preservation fund. Resist the temptation to cash in your savings, as it will be very hard to make up for the value you’ll lose.

More

Retirement Income

If you are retiring soon or are already retired, you need to draw a monthly income from your savings to maintain your lifestyle. You also need to manage your retirement savings to ensure it lasts throughout retirement.

More

Read more on how Sanlam experts are navigating your challenges

Invest

Advice

Service

Invest Online Back

Call me back

Email us

Back

Call me back

Email us

Email us

Sanlam Life Insurance is a licensed financial service provider.
Copyright © Sanlam