Let’s Help Millions of Pensioners That Just Don’t Get Enough Money
Ever wondered why elderly people never seem to have enough money.
I mean if you look at the numbers, it’s hard to not notice that you never see elderly people that are well off.
Yes, they are there, but they are so few and far between that one almost never sees them.
But on the other side of the coin, elderly people that are struggling to survive are literally on every corner.
My grandparents retired/went on pension, but they always needed their family to help and support them.
Their pension income was not enough, in fact, it was a damn disgrace.
Why I say that is because they were promised this pension dream and we all get sucked in.
When you are twenty-five or thirty and you are earning R10,000 per month, the insurance guy comes along and he says “if you just put away R500 a month with a built-in inflation increase benefit. You will get R2 million to retire on when you’re 65 years old.”
The sad thing is he probably didn’t even know that it was a load of BS he was selling you.
The truth is that if you were earning R10,000 a month in the 1980’s at the age of twenty-five years old, that would mean in forty years you will go on pension. But the cost of living in forty years time will be around R40,000 per month average.
So if you started putting R1000 a month into your Retirement annuity it would not pay you R40,000 a month, it will probably be more like R4,000 per month.
That means for one to have the same standard of living when you go on pension, you will need to be putting 75-98% of your income into your Retirement Annuity.
We all know that this would be impossible, but if you did it what would the point be because it would mean that you sacrificed everything when you were young. You never take your family out to a movie or dinner, you never go away on holidays and you never purchase anything new. In fact, you would not be able to purchase a home. NOT A VERY HAPPY LIFE AT ALL.
So you sacrifice all that so that you can live exactly the same when you go on pension, that would be very foolish. You may never get to pensionable age.
YES, it is very important to put away for your pension, but not by sacrificing your families happiness. Put away what you can afford every month, then find a second and maybe a third source of income. This will allow you to give your family the best of everything while you are still young and can enjoy life with them.
It will also allow you to save more and diversify your investments so that when you do go on pension/retirement one day, you can call it your pension dream.