PSG offers recommendations regarding pension savings, the creation of emergency funds, and fuel storage.
Bianca van Niekerk, wealth consultant at PSG Wealth, notes that women often face unique challenges in retirement provision due to career breaks, caregiving responsibilities, and longer life expectancies. She emphasizes that it is not too late to catch up on retirement planning even around the age of 40.
Before catching up, it is necessary to assess the current financial situation: determine existing savings, outstanding debts, and projected income needs in retirement. If saving is already underway, it is recommended to increase contributions and do so regularly, for example, by automatically deducting contributions to a Retirement Annuity upon receiving salary.
It is also advised to review investment funds and become more aggressive in investments, despite potential short-term volatility, as future benefits can be significant. A crucial step is paying off high-interest debt before retirement.
Recommendations for young mothers
Carina van Rooyen, wealth manager at PSG Wealth, advises a young mother with only one month's savings to first focus on accumulating funds covering three months of essential expenses. Instead of trying to immediately reach a six-month goal, tasks should be broken down into smaller, manageable stages. She cautions against stopping contributions to a Retirement Annuity or using tax-free accounts, as both tools are vital for long-term financial stability.
To accelerate the accumulation of an emergency fund, one can review the monthly budget and direct bonuses, salary increases, or tax refunds towards this fund. It is important to understand that achieving the goal may take one or two years, and a disciplined start in the right direction is a key factor.
Priorities for late-starting investors
Suzette von Broembsen, wealth consultant at PSG Wealth, asserts that starting to invest at age 31 is significantly better than delaying for five or ten years. She explains that capital creation depends more on the regularity of investments than on the size of a lump-sum investment. It is recommended to start with basic products such as a Tax-Free Savings Account (TFSA) invested in a diversified growth fund, and a Retirement Annuity (RA).
Furthermore, unnecessary debt must be avoided, especially expensive purchases from stores and other high-interest credit. Controlling debt and prioritizing regular investments help young women strengthen their financial position.
Fuel storage risks
Ryno de Kock, Head of Distribution at PSG Insure, points out that storing extra gasoline or diesel fuel involves serious risks, and this process requires a careful approach. For homeowners in South Africa, according to the South African Insurance Association, residential properties should not store more than 25 liters of flammable liquids. Fuel must be stored in safe, well-ventilated containers, complying with local regulations.
Commercial enterprises have different requirements determined by the insurer's underwriting criteria and the nature of the business. Businesses must ensure proper design, maintenance, and operation of storage areas, including implementing safety measures to prevent fires and spills. Before increasing fuel stocks, it is advisable to consult with an insurance advisor to understand policy requirements and minimize financial risks.