Pensions fall short of securing retirees� future
Friday, March 03, 2017
Many financial experts at the recent BPS annual conference said a retiree needs between 60% and 70% of his final salary as a pension in order to maintain their lifestyle.
“This target pension ratio, referred to as a ‘replacement ratio’ is expected to be enough for the retiree provided he has no debt and no dependants at their date of retirement,” says BPS chairman, Peter Hikhwa.
While the political shift brings hope for change, it also places immense pressure on the new administration to deliver on its election promises in the face of serious economic challenges.On another level, newly appointed Finance Minister Ndaba Gaolathe’s grim assessment of the country’s finances adds urgency to the moment. The budget deficit, expected to be P8.7 billion, is now anticipated to be even higher due to underperforming diamond...