In the latest episode of the Retirement Reimagined series, we aim to understand why so many people are not saving for retirement. The results from the FNB Retirement Survey suggest that it is not just financial constraints.

Host Maya Fisher-French is joined by Bheki Mkhize, CEO of FNB Wealth and Investments, and Renzi Thirumalai, Chief Investment Officer of FNB Wealth and Investments, to unpack the survey findings, which include the immense financial pressure many individuals experience. High costs of living, such as escalating grocery bills and rising transport costs, are squeezing disposable income to the point where saving for retirement feels impossible. 

But there are also the psychological aspects of retirement planning. Humans are inherently wired to seek immediate gratification, making it challenging to prioritise long-term goals like retirement. Many face the dilemma of balancing enjoying today and saving for tomorrow. The discussion unveils how this mindset can lead to procrastination, with individuals believing they have ample time to prepare for retirement only to find themselves caught off guard as they approach their golden years.

Another significant barrier to effective retirement planning is the lack of financial literacy and knowledge about available products. Many participants in the survey reported feeling lost when it comes to understanding their options and where to turn for trustworthy advice. This gap in knowledge can lead to poor decision-making, such as cashing in retirement funds prematurely or opting for low-return savings options out of fear of market fluctuations.

The discussion highlights ways people can start investing for retirement, including automating their savings with regular increases in contributions to keep pace with inflation and rising living costs.

 Whether it's seeking guidance from financial advisors, understanding the intricacies of investment products, or simply starting to save, the message is clear: the sooner you start, the better prepared you'll be for retirement.
 
For more information on the retirement survey, click this link. 

In the latest Money Bootcamp episode, Maya Fisher-French and Mapalo Makhu are joined by a special guest, Nonhlanhla Bakasa, founder of AdoWord Multimedia, to discuss the reality of living with a disability. Nonhlanhla has been a "wheelchair rider" since the age of 12 when she suffered a spinal injury in a car accident.

Nonhlanhla provides an honest and frank insight into the challenges she faces every day, not only with the physical reality of her disability but also the financial battle. Her story highlights how inadequate the system is for those living with a disability. 

Stian de Witt, certified financial planner and executive head of Energy Financial Planning at NMG Benefits, also joins the conversation and shares his experience of clients who became disabled, and the costs involved. Stian offers some practical advice on how to find the balance between having protection in place but not being over-insured.

The conversation also addresses the emotional toll of dealing with financial administration, including claiming from the road accident fund, medical schemes, and insurance companies, and the critical need for a supportive financial team.

Both Nonhlanhla and Stian advocate for building a support system, whether through friends, family, or financial professionals who can guide individuals through the complexities of financial planning and insurance claims. This episode covers: 

In the latest episode of Retirement Reimagined, we examine what retirement means to those over 60. Using the findings from the FNB retirement survey, host Maya Fisher-French speaks to Renee Coughlan of FNB Wealth and Investment about the reality facing many retirees who feel less prepared than ever before.
 
Individuals over 60 report a lack of confidence in their retirement readiness, exacerbated by rising living costs and inflation. As Coughlan points out, the pension income that many retirees rely upon is not keeping pace with the cost of everyday essentials, from groceries to medical expenses. This stark reality has left many feeling anxious and uncertain about their financial futures.
 
One of the key themes discussed is the need to support multiple generations. Many retirees find themselves financially responsible for not only their children, but their elderly parents and even grandchildren, further straining their already limited resources. 

Throughout the episode, the hosts emphasise the necessity of regular portfolio reviews. Coughlan stresses that many people only start to seriously consider their retirement plans as they approach their late fifties, which can be too late to make significant adjustments. Regularly reviewing investment portfolios, insurance policies, and budgeting can make a substantial difference in achieving retirement goals.
 
Budgeting is another critical topic covered in the episode. The hosts share practical advice for seniors, such as seeking out discounts and rewards programs and re-evaluating existing expenses. By making small sacrifices and adjustments, retirees can free up cash that can be redirected towards their retirement savings.
 
For those under 60, the episode serves as a wake-up call to begin preparing for retirement sooner rather than later. Retirement is not just about ceasing to work; it’s about living a fulfilling life. The financial landscape is changing, and it’s essential to be proactive in planning for the future.

Click this link for more information on the retirement survey. Don't miss the next episode, where we will discuss what prevents us from planning for retirement.

We asked many single moms what their greatest concerns were regarding drawing up a will. Host Maya Fisher-French asked fiduciary expert Deenisha Nadesan of Capital Legacy to answer them.

For most moms, their concerns were around who would look after their child, who would manage the money on behalf of the child, and whether they had enough to provide for their living costs and education.

We covered all the questions you need answers to including:

·       Can I leave a property to my child
·       What makes a will valid
·       What happens to my pension fund?
·       Can I nominate someone other than the biological father as guardian 
·       How does a testamentary trust work, and how is it different from a beneficiary fund? 
·       How much does it cost to draw up a will
·       Who should be the executor

While this was a discussion about single moms, it is relevant to any parent. 

Click here for the Single Mom's Guide To a Will. 

In the latest episode of the Santam Insure Your Future Money Bootcamp, we discuss the sensitive topic of debt. While we all need credit, especially to purchase a home or a car, if it is not managed carefully, it can become a debt trap which undermines all our other important financial goals.

Brian Mphakoanyane from Summit Financial joins hosts Maya Fisher-French and Mapalo Makhu to explain credit scores, good and bad debt, and what to do when debt becomes unmanageable. 

The conversation delves into practical strategies for managing debt, understanding creditworthiness, and the importance of maintaining a healthy debt-to-income ratio. Brian shares insights on debt review, its pros and cons, and the significance of creating an emergency savings account while under debt counselling. 

This episode is not just about understanding debt; it’s about empowering listeners to take charge of their financial futures. By providing practical tips and expert advice, this episode provides information to reassess their financial habits and make informed decisions. Tune in to gain the knowledge you need to transform your financial situation and pave the way for a brighter financial future.

People are surprisingly confident about their retirement plans, so why are so many people underfunded?

In the latest Retirement Reimagined episode, host Maya Fisher-French and Ester Ochse, head of Integrated Advice at FNB, unpack why confidence does not mean preparedness when it comes to retirement.

While 25-27% of South Africans feel confident about their retirement preparedness, only 10% can actually afford to retire comfortably. This disconnect becomes even more pronounced with age – younger people display the highest confidence levels, yet this optimism crumbles as reality sets in during their 40s and 50s.

This is because people seldom have a retirement plan with specific goals and objectives. Most of the time, it is just a belief that because there is a retirement fund, whether that is through an employer or a retirement annuity, it will be enough.

Not investing enough and cashing in when changing jobs all negatively impact retirement outcomes, yet the wrong investment choices can also impact your ability to reach your retirement goals. Fixed deposits and savings accounts, while feeling "safe," are actually eroded by inflation over time. 

In this episode, Ester discusses how to ensure that your retirement plan will deliver decent retirement outcomes, what type of investments are appropriate for retirement, and the importance of understanding how much is enough.
 
For more information on the retirement survey, click this link. 

In this episode of the Insure your Future Money Bootcamp, hosts Maya Fisher-French and Mapalo Makhu discuss the financial journey of one of Maya's mentees who is in the process of buying her first home. They share practical insights and personal anecdotes that highlight the importance of thorough financial planning before making such a significant purchase.

Understanding the Costs of Homeownership
Maya and Mapalo emphasise the importance of not rushing into homeownership and instead taking a calculated approach by evaluating current expenses and potential new costs. The mentee has been diligent in budgeting, ensuring she understands the costs of levies, utilities, and maintenance before making an offer on a property.

Key Considerations for Homebuyers
The hosts outline crucial factors to consider beyond personal budgeting. They stress the importance of obtaining levy statements and understanding the financial health of the body corporate, as well as the need for a home inspection to uncover potential issues before moving in. They also touch on the often-overlooked costs such as rates and taxes, which can come as a surprise to new homeowners.

Navigating Mortgage Options
Maya and Mapalo highlight the necessity of shopping around for the best mortgage rates, advising listeners not to be tied to their current bank. They discuss the benefits of using a bond originator and the potential for banks to offer 110% mortgages for first-time buyers, covering both the purchase price and additional costs.

Final Thoughts
Listeners are encouraged to run the numbers, consider all associated costs, and make informed decisions to ensure homeownership is a positive experience rather than a financial burden. 

Join us for an insightful conversation that empowers you to take control of your financial future and make informed decisions on your path to homeownership.

As retirement approaches, many people find themselves grappling with the reality of their financial plans – or lack thereof.  

In the latest Retirement Reimagined episode, host Maya Fisher-French and Sizwe Nxedlana, CEO of FNB Private Segment explore the increasing trend of individuals pursuing second careers or side businesses as part of their retirement strategy. With many people finding themselves in a position where they need to maintain their lifestyle post-retirement, the idea of working longer or starting a new venture is becoming more appealing.

Retirement Readiness and Challenges

A staggering 90% of respondents indicated they feel unprepared for retirement. Maya and Sizwe discuss the implications of this statistic, examining the financial pressures that lead many to work longer, including lifestyle inflation and the need to maintain a certain standard of living. They emphasise that for affluent individuals, the challenge of retiring comfortably often stems from high expectations and insufficient savings.

Second Careers and Side Businesses

The conversation shifts to the growing importance of second careers and side businesses as integral components of retirement planning. Sizwe highlights how improved health outcomes and changing corporate norms are allowing people to remain in the workforce longer, while also exploring how entrepreneurship can provide an alternative path to financial security in retirement.

Financial Literacy and Planning

Maya and Sizwe stress the significance of financial literacy and proactive planning. They urge listeners to engage with their retirement benefits, understand their company’s retirement policies, and seek professional advice early in their careers. The episode underscores that effective retirement planning is not merely about accumulating wealth but also about making informed decisions that align with long-term goals.

For more information on the retirement survey, click this link. Don't miss the next episode, where Maya will discuss how much you truly need to retire comfortably.

In the third episode of the Santam Insure Your Future Money Bootcamp, hosts Maya Fisher-French and Mapalo Makhu welcome the Thokozani, a budgeting superhero and one of Mapalo's mentees from last year. Thokozani shares her inspiring journey from financial struggle to mastering her money management skills, revealing how a shift in attitude transformed her relationship with finances.

From Struggles to Superhero

Thokozani opens up about her previous financial struggles, where payday was met with dread rather than excitement. Discover how she overcame feelings of overwhelm to take control of her financial future. Her story serves as a reminder that anyone can change their financial narrative with the right mindset and tools.

Budgeting Techniques

Listeners will learn about Thokozani's budgeting process, which incorporates a mix of apps, Excel spreadsheets, and good old-fashioned pen and paper. She outlines how she tracks her spending across different categories and the importance of being intentional with her finances. The conversation also touches on managing unexpected expenses and the necessity of having an emergency fund.

Side Hustles and Financial Goals

Thokozani discusses her side hustle and how she utilises that income to bolster her financial security, illustrating the significance of having a clear purpose for additional earnings. The episode also highlights the importance of investing as part of a comprehensive budgeting strategy, ensuring that listeners understand the value of planning for future financial growth.

Empowering Family Conversations

Thokozani shares how budgeting has improved her finances and transformed her family's financial conversations. She emphasises the shift from a scarcity mindset to one focused on abundance and investment, paving the way for her children to engage in meaningful discussions about money.

Join Maya, Mapalo, and Tokozani for an enlightening conversation that demystifies budgeting and inspires listeners to take charge of their financial journeys. Whether you're struggling to make ends meet or looking to optimise your financial strategy, this episode offers valuable insights and practical advice to help you become your own budgeting superhero.

 For more resources and support on your financial journey, visit the Insure Your Future  Money Bootcamp website and explore the tools available to help you manage your money effectively.

This series is sponsored Santam, helping you insure your money for a better future.

Your pension fund is likely your biggest asset, but do you know your rights when things go wrong? In this episode of "Know Your Ombud," host Maya Fisher-French interviews Pension Funds Adjudicator Muvhango Lukhaimane..

If your pension fund or employer isn't treating you fairly, you can approach the Pension Funds Adjudicator at no cost – no lawyer needed. They'll even help if you haven't tried resolving issues with your fund first.

In this episode, Lukhaimane raises the importance of fund communication with many members having never even held a benefit statement. Funds are failing to share basic information about your benefits, growth, and entitlements. You should actively demand this information.

Two-pot taught harsh lessons about tax. One member expecting R15,000 from his savings pot received only R2,000 because SARS deducted outstanding taxes. Remember: all withdrawals require tax clearance, so keep your affairs in order.

Death benefits aren't automatic. Trustees have discretion based on actual financial dependency, not just legal relationships. In one case, trustees allocated 65% to minor children over adult children and spouse because the minors had greater dependency needs.

When funds place children's benefits in beneficiary funds, the default position favours competent parents managing the money. One mother successfully challenged this when the fund couldn't prove she was incapable.

But members aren't always right. One member demanded R1 million based on an incorrect statement. The ruling? You can't get what you're not legally entitled to under fund rules.

Bottom line: Stay informed, know your rights, and use free help when needed.

If you feel let down by a financial provider, contact one of these Ombud schemes:

- FAIS Ombud for financial advice disputes – faisombud.co.za
- Office of the Pension Funds Adjudicator (OPFA) for pension fund related disputes – pfa.org.za
- JSE Ombud: JSE-related issues – jse.co.za
- National Financial Ombud Scheme (NFO) for banking, credit, and insurance – nfosa.co.za

This series was created in partnership with The Ombud Council.