2: Retirement Reimagined Episode 2: Is retirement planning a luxury?

In this episode of "Retirement Reimagined," host Maya Fisher-French engages in a thought-provoking discussion with Lytania Johnson, CEO of FNB Personal Segment about the pressing question: Is retirement planning a luxury only for those with extra cash? Together, they explore how the financial realities faced by many South Africans often push retirement planning to the backseat, overshadowed by immediate needs like housing, education, and debt repayment.

Realities of Retirement Planning

Lytania shares insights from the latest FNB retirement survey, revealing that only 9% of income is currently allocated to retirement savings, compared to a staggering 20% spent on groceries. The conversation highlights the challenges of cashing out retirement funds, the impact of the two-pot withdrawal system, and the necessity of understanding contribution levels for a secure retirement.

Side Hustles and Additional Income

As the discussion unfolds, they investigate the rise of side hustles as a means to generate extra income and how these ventures can play a significant role in retirement planning. They emphasise the importance of changing mindsets around retirement savings, urging listeners to prioritise their future and consider the long-term benefits of investing even small amounts from side income.

Changing Behavior and Mindset

Maya and Lytania tackle the societal tendency towards instant gratification and the need for education on the time value of money. They stress that retirement should not be viewed as a distant goal but as a present responsibility that requires action now. The episode closes with a reminder that every bit saved today contributes to a more secure tomorrow.

Tune in to gain valuable insights on navigating the complexities of retirement planning and learn how to turn your financial future into a priority, not a luxury.

For more information on the retirement survey, visit the FNB website. Don't miss our next episode, where we will discuss the importance of second careers in postponing retirement and leveraging side hustles as sources of retirement income.