{"id":310,"date":"2019-08-02T03:15:26","date_gmt":"2019-08-02T03:15:26","guid":{"rendered":"https:\/\/www.innov8fs.co.za\/blog\/?p=310"},"modified":"2026-03-18T11:46:47","modified_gmt":"2026-03-18T11:46:47","slug":"saving-through-insurance-for-professionals","status":"publish","type":"post","link":"https:\/\/www.innov8fs.co.za\/blog\/2019\/08\/02\/saving-through-insurance-for-professionals\/","title":{"rendered":"Saving through insurance for Professionals"},"content":{"rendered":"

\"\"In a recently released study by the World Economic Forum paper, \u201cInvesting in (and for) Our Future, June 2019\u201d, it was reported that people around the world will outlive their retirement savings.<\/p>\n

Life expectancy in South Africa at birth for 2018 is estimated at 61,1 years<\/strong> for males and 67,3 years <\/strong>for females. However, for our professionals, this is slightly higher as most have better access to healthcare services, nutrition and a healthier lifestyle. Some scientists even believe that the first person to live to 200 years old, has been born. (Professor Kim of Stanford University).<\/p>\n

Proportion of males and females who can expect to survive into their 90\u2019s and beyond<\/h3>\n

\"\"<\/p>\n

Currently, the standard retirement age for those in employment is between 60 and 65 years. Those in self-employment can potentially work until a later age. We do not control when we are going to die, we cannot control if or when we will get sick or disabled, and we definitely cannot control the stock market, politics, economics and many other areas of our lives. What we do have control over though, are the decisions we make about our lives, our finances, relationships and to a certain extent, our health.<\/p>\n

The reality of retirement<\/h3>\n

Having spent decades working hard, maybe raising a family, or starting and running a business, it is safe to assume that many are looking forward to a quiet, peaceful and financially secure retirement. However, the South African National Treasury estimates that only 6% of South Africans will retire comfortably.<\/p>\n

Not only have few people saved sufficiently for retirement during their working lives, but many also make the mistake of assuming that their spending will reduce in retirement. The statistics, however, suggest that they will need 70 – 80% of their pre-retirement income, to be able to pay for their needs in retirement.<\/p>\n

Some reasons expenses do not decrease significantly in retirement<\/h3>\n

More free time can equal more travel. With this come added expenses of fuel and possibly insurance. Medical aid and bills may increase, as we get older. Some choose a more comprehensive medical aid plan, to cover more day-to-day expenses. There is also an increased risk of more medical expenses. Professionals are having children later, so might still have dependents in their later years.<\/p>\n

Reality check<\/h3>\n

Starting early when saving for retirement is one of the best tools you can use to protect yourself against the financial effects of a long retirement. In reality however, not many of us are disciplined or knowledgeable enough to start early. With people changing jobs more regularly, not cashing in any accumulated pension\/provident funds is equally important.<\/p>\n

The table below illustrates what percentage we need to save at different ages:<\/p>\n

\"\"<\/p>\n

While the need for saving for retirement is important to offer protection and peace of mind for life after retirement, the other side of the same coin is the need to save through insurance. Risk insurance protects us against life\u2019s eventualities so that we do not use our own funds to pay, for example, the replacement value of a stolen car, or a burst geyser.<\/p>\n

\"\"<\/p>\n

Other forms of insurance include protecting ourselves and our earning potential against sickness, disability, dread disease and being unable to provide for our families in the event of death. This is especially devastating, if it happens at a younger age or in the prime of our careers.<\/p>\n

Money for jam<\/h3>\n

Living life, while enjoying the right balance of both types of insurance, i.e. protection from longevity and from risk events, takes careful planning and consideration.<\/p>\n

\"\"Once the need for both is understood, the next big decision should be an easier one: selecting protection with a company that not only provides the full suite of financial services (short-term and long-term insurance, healthcare and investments), but also rewards its members in the form of a Profit-Share Account.<\/p>\n

The savings that are accumulated in the Profit-Share Account may then be used in retirement to pay for expenses like medical aid, insurance, a retirement home, a special holiday with the family and even some savings for that rainy day<\/p>\n

\"\"<\/p>\n

Start with the end in mind<\/h3>\n

A comfortable retirement is possible and can be complemented by the PPS Profit-Share Account. As with other savings and investments, the sooner you start to accumulate money in this account, the more your money will work for you.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

In a recently released study by the World Economic Forum paper, \u201cInvesting in (and for) Our Future, June 2019\u201d, it was reported that people around…<\/p>\n","protected":false},"author":1,"featured_media":315,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5,21],"tags":[],"class_list":["post-310","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investment","category-life-insurance"],"_links":{"self":[{"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/posts\/310","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/comments?post=310"}],"version-history":[{"count":1,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/posts\/310\/revisions"}],"predecessor-version":[{"id":316,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/posts\/310\/revisions\/316"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/media\/315"}],"wp:attachment":[{"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/media?parent=310"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/categories?post=310"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/tags?post=310"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}