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Sustainability Should Be a Priority When Planning For Retirement


The local annuities market has grown over the last few years. At the same time, fewer individuals are opting for conventional life annuities, which is quite interesting since conventional life annuities are the only products that provide guaranteed returns for the rest of the retiree’s life. However, these products tend to be expensive (particularly ones that adjust for inflation) and income yields are low.

While some people are prepared for retirement, most are not saving enough. These retirees hope that the market will make up for any lack in capital and are opting for living annuities, which offer more flexibility and the potential to earn higher returns.

The real issue here is a lack of savings. If you find yourself in this category then don’t despair: Proper planning and rational investor behavior can help you manage the problem.

The key is planning

Investors need to examine their financial positions and speak frankly about their options long before they retire. This may be a painful exercise but will present you with more options and ultimately choices. Having as much information about where your funds are invested and what the best performing unit trusts are, help make these choices less daunting. Think about how much you have saved and how long you will need support yourself during retirement. The key risks most retirees face are outliving their money and inflation eroding their savings. Developing a plan will help you account for these risks. As our life expectancy continues to increase it is advisable that you limit your consumption during the early retirement years.

Facing the facts

A lot of capital is required to enjoy the same lifestyle after retirement. If you retire with less than you need you can offset it by drawing more income early on, but this is not sustainable. Spending too much after saving too little is guaranteed to end badly.

You can consider delaying your retirement a few years to save a bit more. It tends to be easier to extend your career rather than go back to work after retirement. This may not be the most attractive option available, but it allows you more time to save, less time to live off those savings and gives your capital more time to grow.

You should not underestimate the impact this extra time will have on your savings. Extending your career in your twilight years may not be that appealing, but it is a better option than having to survive on a low retirement income or running out of money too soon. While some factors may be out of our control we can at the very least influence the longevity of our savings.


  • Reply Cory |

    this blog needs some new regular contributors. seems like you cant stay ahead of the pattern. clearly after awhile the bloggers loose steam. Life gets busy. you should probably regularly look for new contributors so you don’t have these down times.

  • Reply Jane |

    I agree. Ashley has done amazing, but I know she is busy with the academic year beginning. Hope, I gave up on following long ago – sorry. πŸ™ I’d love to see some new contributors!

  • Reply Kili |

    I do enjoy following Ashley and Hope but also think another regular contributer would be great

  • Reply Susan |

    I agree with the above. Ashley has been carrying it, but an additional blogger is needed.

  • Reply Chantal |

    New bloggers are seriously needed. This site began very well but is now in the doldrums.
    Hope and Ashley, in their different ways, may never be out of debt–debt is a life-style for them.

  • Reply Susan |

    I respectfully disagree with the last poster. I think Ashley had made great progress and will get rid of her debt. She has just encountered some bumps along the way.

  • Reply Jenna |

    We did actually have a new contributor – several months back.
    Did “life” take her away?

  • Reply Cory |

    Amy? Looks like 3 total posts last one over 9 months ago. Wouldn’t hold my breath for any more. Lol

So, what do you think ?