Retirement: Get ready for an exciting life

MICHAEL BELLING

She was speaking with financial planner and educator Cliff Barnes on “The Next Chapter – embracing post Midlife Changes and Planning for Retirement”, presented by the Chevrah Kadisha Social Services and CAJE.

Smith said the baby boomer generation, people between the ages of 50 and 70, were born into an era of positivity in South Africa. It is a can-do generation.

Technology is one of the biggest drivers of change in society, from medical technology to information technology.

“Many areas of technology are changing ageing as well,” she said.

Among the trends to watch are lifelong learning, the work and play cycle – “do you work for money or meaning” – volunteering and the need to stretch finances to last throughout the retirement years.

The boomer generation did not grow up with computers and some people do not know how to use them, although today this is a vital skill.

Boomers will not retire like their parents, Smith said. The world has changed, they are living longer, they often have not saved enough and they want to add value and make a difference, even in retirement.

Retirement brings about many challenges, including life outside the corporate office, living at home with one’s partner, lifestyle diseases, lack of finance, not being able to market our skills and not being sufficiently techno-savvy, which often requires upskilling.

It is also necessary to build new goals and plans.

If we fail to plan and set goals, “we are often involved in our brains slowing down as we get older, not just our bodies”, she said.

We have to examine our life options

Barnes said retirement is a time “to plan your next life”, probably over many years of retirement.

“Retirement should be fun,” he said, but it requires a foundation of finances to support other aspects of life – leisure, community, health and housing. “Finances are the empowerment factor.”

Boredom is a major problem after retirement. An American study showed that two thirds of retired executives die within three years of retirement. The only difference between them and those who lived longer was that the other third looked forward to their retirement and planned for it.

Most people retire with insufficient finances, but even those who do have a lot of money, have to plan for a lengthy retirement. This means that they should not opt for “safe” investments in the bank, because inflation can erode the value of their money.

Investing in shares or in property are far better long-term investments, Smith said. Shares in particular provide returns that exceed inflation, which is a requirement for successful longer-term investing.

Decisions at retirement relates to the amount of cash needed and available and depends also on the goals set at that time.

Retirement goals are not just financial, but cover all areas of life.

There are many financial choices available at retirement and sound advice is required.

Rabbi Yossy Goldman, spiritual leader of the Sydenham-Highlands North Hebrew Congregation, said it was vital for people to have something to wake up for in retirement.

Sandra Goldberg of the Chevrah Kadisha Social Services introduced the speakers.