Renishaw Hills shares 5 tips to protect your retirement savings in 2021

Many lessons have been learned this past year that are directly impacting habits in 2021, particularly when it comes to financial security. One area where fiscal prudency has become paramount is in the retirement sector, with people now seeking ways to both protect existing savings, as well as ways to make it go much further.

 

“With ever-increasing life expectancies and rising cost of living, it’s always safest to put away as much as you can while ensuring all measures are in place to protect your retirement savings,” explained Phil Barker of Renishaw Property Developments. “Having worked in retirement living for a number of years, we’ve picked up on certain practices that have seen retirees benefit immensely from existing funds, allowing them to overcome the more challenging times as were experienced in 2020.”

 

1. Choose an all-inclusive levy option

When looking to retire in an estate, it’s important to factor in the ongoing costs and compare these with monthly living expenses. A retirement estate that offers an all-inclusive levy - covering aspects like security, insurance, home and garden maintenance, as well as a fibre optic internet connection - gives you a realistic idea of what is affordable, and budgeting can be arranged accordingly.

 

2. Consider a life-rights model

There is a growing trend for retirees to invest in estates that offer a sectional title ‘life rights’ model which allows for lower entry costs. This means retirements savings can continue to grow, and the investee benefits from quality of life now. It’s also beneficial in that the developer is invested in the maintenance of the estate, offsetting monthly costs for the retiree.

 

3. Check about a levy stabilisation fund

More and more retirement estates are implementing a levy stabilisation fund which is a once-off contribution paid upon disposal of the unit, as a way to ensure levies remain at a fixed rate and the increases are kept below the inflation rate. This is because most retirees will be living off a fixed income and a sudden special levy might push the budget.

 

4. Plan for healthcare

Healthcare costs are high and will only continue to climb as the years go by, which is why it’s important to factor in healthcare when considering retirement. Many retirement estates will offer some form of healthcare, whether it’s an on-care frailcare centre, or the increasingly popular home-based care. This is where a specialist home-care provider will operate within the retirement estate, providing retirees with personalised healthcare in the comfort of their own homes. Home-based care also mitigates the need for maintenance costs related to a frailcare facility.

 

5. Factor in inflation

A high rate of inflation can quickly diminish a retiree’s purchasing power over time, even if the inflation rate is relatively low – which it often is not. It’s important to consult with financial experts that provide solid investment advice that will keep up with the rate of inflation, preferably across a diversified portfolio.

 

Renishaw Hills, a mature lifestyle estate located in the scenic KZN South Coast, prioritises investors’ interests by ticking all these boxes. Homeowners benefit from a nature-based quality of life with access to all forms of modern convenience, while enjoying peace of mind in knowing that their financial and personal interests are well cared for in their retirement years. 

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