According to the recently released BankservAfrica Private Pension Index, more than half of retirees in South Africa receive a pension of less than R4000 per month.
The Index covers 85% of all pension payments that pass through BanksevAfrica’s clearing system. The organisation also monitors the salaries that bank customers are paid through the payment clearing system. On average, pensions amount to only 45% of salaries (after tax and other deductions) earned by employees in the formal sector.
There is little that pensioners already in retirement can do if their pensions are small and increasing at a rate lower than inflation. But if your retirement is still ahead of you, you can make decisions now that will impact on what your retirement will look like.
Find out how to tackle your retirement planning at the Ready Set Retire Conference, which takes place on 17 March in Durban. Book through Computicket or visit www.readysetretire.co.za for more information.
[Source: Personal Finance in The Indpendent on Saturday, 7 Feb 2015]