Research by Alexander Forbes shows that your retirement savings in a defined-contribution fund are unlikely to sustain your standard of living in retirement, even if you have saved for 35 years. This is because your fund’s targets fail to take your unique circumstances into account. The research shows that only 15 percent of members with 35 years of membership can expect to retire with a pension equal to or more than 75 percent of their final pay-slip. Personal Finance considers why your retirement fund needs to find a better way of getting you the income you need for a comfortable retirement.
Also in our weekend print edition:
* Five ways to combat the financial disadvantages that most women face.
* Coronation scraps performance fees on some funds.
* Your financial queries answered, courtesy of Old Mutual Wealth.
Personal Finance is published every Saturday in the Pretoria News Weekend, the Saturday Star, The Independent on Saturday and the Weekend Argus.