Financial Focus

Your retirement is something that you should have been planning for your whole life. Once you have retired your income will come solely from your Life/Living Annuity and any other income producing investments or savings you may have.

By now your house is probably paid for while your medical requirements have more than likely increased. Your income will be reduced and your investment focus will be on capital preservation.

Financial plan

You would be wise to consult your adviser regularly to see if your investments are keeping pace with inflation and that your income does not deplete your capital.

Emergency savings plan

Retain your emergency savings fund as this will save you from having to dip into your other investments.

Income generation

Your monthly income is now drawn solely from your income generating investments. These investments will pay for your weekly, monthly and annual expenses.

On retirement you will have commuted the proceeds of your retirement funds into a compulsory annuity. Ask your adviser about Old Mutual's retirement income products. If you have planned well you should also have discretionary (voluntary) income generating portfolios.

Medical aid

At this stage of your life it is important that you are a member of a comprehensive medical aid that caters for intensified day-to-day expenses and possibly chronic illness.

Short-term insurance

You have worked hard to achieve your goals and for your possessions. So, whether it is a car or a hi-fi you should consider protecting your assets and possessions with a good short-term insurance product that suits your specific requirements.

Don’t forget that your income is now limited and you simply cannot afford to replace items like TV’s, Hi-Fi’s and cars at this stage.

Investments

If you still have capital to invest ask your adviser to help you restructure your investment portfolio to suit your lower risk profile. Old Mutual's range of investments and savings products offers you flexibility so that you can shift your focus from growth to preservation. Although don’t forget inflation risk and factor in some growth to offset its erosive effects.

Funeral plan

Funerals are costly and complicated to arrange. Ensure that, should you die, you have removed these burdens from your family by investing in comprehensive funeral cover.

Estate planning

Make sure your estate is in order. Revise your Will, check your beneficiaries and trusts. Old Mutual offers an estate planning service that will help you draft your will, conduct a tax-efficiency analysis and set up any trust. Old Mutual also offers trustee and executorship services.

Advice

Contact an Old Mutual financial adviser today to help you develop a financial plan that suits your current circumstances and financial position.