6 ways to make your retirement capital last longer

In an environment where most South Africans don’t save enough for retirement and where returns have recently been muted, there have increasingly been warnings that retirees in living annuities should consider lowering their
drawdowns to improve the probability that their money will last.

But Marc Thomas, manager for client outcomes and product research at Bridge Fund Managers, says it is not necessarily that investors haven’t saved enough – they may have been exposed to inappropriate strategies.

For example, a specific investor may have been advised to save R2 800 a month towards retirement in a fund targeting a return of CPI plus 3%, but in order to provide an adequate income in retirement, this investor
should have been invested in a CPI plus 5% portfolio (or should have been saving substantially more in the more conservative portfolio).

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