As a woman in my 30s, the thought of retirement feels like a daunting concern. When I realise that I have roughly as many years ahead to prepare as I’ve already lived, it’s a sobering thought! Like many others, I didn’t grow up with financial planning or financial literacy as a skill that was handed down to me, so here I am, starting from scratch and essentially teaching myself the ropes through those in the know.
I was fortunate enough to have attended Momentum’s Science of Success Festival 2024, and I’ve managed to pick up some gems from the financially savvy to help me prepare for retirement. As it stands, only 6% of South Africans are able to retire comfortably.
Here are some key takeaways from Executive Head of Momentum Brand Marketing, Qhawekazi Mdikane:
- Find an expert – these are people who deal with financial planning daily. They know the ins and outs and the current economic landscape and will be able to provide you with insight into making the best decisions for your financial goals.
- Form positive financial habits – understand where your strengths and weaknesses lie, in terms of your financial decisions and work on improving your financial behaviour. For instance, if you’ve never saved a cent in your life, you can start small with R20 a week and as you get into the habit of saving, you can increase the increment as you see fit.
- Interview a couple of financial advisors – before settling on the first financial advisor you find, go around and shop for one. Start by asking screening questions that will help you understand how the two of you will be able to work together.
- Be clear on your requirements and needs – ask yourself what it is that you need. Are you looking to take care of potential medical bills? Save for your children’s education or retire comfortably? Be open to amending your list of needs at various chapters of your life.
Key considerations when choosing a financial advisor:
- Find someone you’re comfortable with and someone you trust – be prepared to answer hard questions truthfully. “They will ask about your marriage,” explains Mdikane. “They will want to know if you are happily married. Because you need a financial plan and a man is not a financial plan.”
- Find someone who speaks your language – you will need them to explain the details of your financial plan in your home language. This will make it easier for you to digest and for you and your financial advisor to be on the same page.
- Find someone who is patient – “You can’t have a financial advisor that intimidates you,” warns Madikane. You will need someone who will be able to take you through your policy, and all the terms and conditions and understand what it is you’re paying for and what they are promising you.
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Feature image: Pexels
