Think carefully about retirement

People need to change their thinking about retirement planning, as some may now have to work until they die.

Benoni resident Derek Dingwall recently returned from the annual Million Dollar Round Table seminar.

This is according to Alphen Park resident Derek Dingwall, who recently returned from the annual Million Dollar Round Table seminar, held in Vancouver, Canada.

“The meeting was attended by 11 400 members from 50 different countries – all with one thing in common: to listen to the latest concepts of financial planning, the world economy and longevity,” he said.

Dingwall, who is a financial planner for Momentum, has been attending these meetings since 1981.

“The main theme this year was the effect of longevity on the financial planning required to finance your retirement savings,” Dingwall added.

“It’s never been as complicated and demanding as it is now, due to the fact that the baby boomers (born between 1946 and 1964), are more active, have access to better healthcare and are living and working longer, which has changed everything in the world of retirement.

“Conventional retirement planning used to be based on a retirement age of 65 and companies provided a guaranteed increasing pension to the employee for life.

“These were known as fixed end benefit schemes and ceased in the 1990s.”

Dingwall said they were replaced with defined contribution schemes, which provide the retiree with a lump sum which must be invested by the retiree to provide a monthly income.

“These lump sums are normally not sufficient to provide an adequate income for life, to cover increasing day-to-day expenses as well as medical aid contributions,” he explained.

“Certain countries in the world have abandoned the compulsory retirement age of 65 and this allows the employee to work for as long as possible; as long as they are able to do so.”

“There is a greater need for the financial planner to be qualified to deal with these factors as the term ‘retirement’ has been replaced with ‘lifestyle planning’, as people are now working beyond the normal retirement age.”

Dingwall is looking at holding local seminars on retirement and lifestyle planning.

If you are interested in attending one of these seminars, you can e-mail to him at Derek.Dingwall@momentum.co.za