With the cost of living rising rapidly, many pensioners are forced to increase their withdrawal rates to well above the recommended levels, in an environment that hasn’t provided sufficient growth to sustain such high withdrawal rates, says Louw.
“Aside from comments from the retirees I work with daily, enough research has been done over the years to determine what retirees would have done differently, given the opportunity to start over. It will come as no surprise that most of them claimed that they would have saved more and would have obtained proper advice well before retirement, if they got a second chance.
“Despite these observations, I still get the impression that most people don’t realise how important it is to save as much as possible before retirement, even when times are tough,” says Louw.
He has the following advice: