Taking care of yourself during retirement

Women retirement financial planningI have been in the financial services industry for a number of years now, and have encountered many different people, from all walks of life. Naturally, I have a few tales to tell. One particular encounter will remain with me forever. It was not a happy one.

I remember visiting an 85-year-old who had worked as a teacher. Her sole asset was her home in a rundown part of Goodwood. To make ends meet, she had sold her refrigerator, and on her kitchen counter was a tin of dog food. Her one meal for the day. Her only income was a pension of R200 per month. She had outlived her other sources of income. Her children and their families had moved abroad. She had no one to turn to for help.

Inflation can wreak havoc on retirement planning, particularly in situations where a partner, who had previously contributed financially, passes away. In 2006, one litre of long life milk cost just R5,75. While a loaf of white bread would have set you back R3,75*. In the past decade, the price of basic foods has nearly tripled. This is what inflation looks like.

Statistically, woman live longer than men, which means you will probably outlive your husband. Couples financial planning is important, especially if you have joint assets. However, even within a partnership, individual needs can vary widely. Therefore, you need to ensure that your personal finances are in order.

To help empower women, Northwood Financial Services, in collaboration with Allan Gray, will be hosting a once-off seminar titled: The challenges of financial planning for women. If you wish to attend this seminar, please make contact with our office, where you will be put on a short-list. The event invitations will be issued once we are ready to launch.

*Then and now food prices

 

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