While this may seem a bit unbelievable, the advances we are seeing in medicine and diet, plus the adoption of much healthier pastimes and exercise regimes, has definitely led to longer life expectancies.
Jacques Brown, a wealth manager at Private Client Holdings, said that added to this was the fact that socio-economic conditions had also changed. People were getting married and having children later than the previous generation. Children were staying dependants for longer than before as entry into the job market had become increasingly difficult. Day-to-day living expenses have escalated.
“This all puts strain on the average person’s ability to save. Costs associated with retirement, such as retirement homes, electricity and groceries, have also escalated, and of course medical expenses climb as we age,” advised Brown.
“Added to this, returns on investments have decreased from before. We do not see the same returns on the average balanced fund as before due to tepid returns on the local and world markets, as well as low returns on property investments. This would mean that people saving for retirement have to save more capital in an environment where there is less surplus income. This also means that people in retirement have to tighten their belts.”