Why you shouldn’t rush to compete in one of the most dangerous sports in the world

What if I told you that there was a sport that many retirees competed in that could be viewed as one of the deadliest sports in the world, a sport with a very high mortality rate? Of course, this is tongue in cheek, as we all know that lawn bowls is actually very safe and beneficial for its participants.

When we think of dangerous sports, lawn bowls isn’t likely to come to mind. Yet this tranquil game, often played by the elderly, carries an unexpectedly high mortality rate. The “danger” of lawn bowls, driven by its participants’ age, serves as a metaphor for the importance of careful planning and foresight in retirement.

The reality of retirement

Retirement is often idealised as endless days of relaxation. However, a sobering 2023 study by the Association for Savings and Investments in South Africa reveals that only 6% of South Africans are on track to retire comfortably. This stark reality underscores the urgent need for effective retirement planning.

A personal story from my early career highlights the consequences of poor financial decisions. In a retirement village near Modimolle, I met two affluent widows who had lost nearly all their savings due to bad investment advice. Once wealthy, they were forced to turn off their home geysers to save on electricity and used communal showers at a public swimming pool. This heartbreaking scenario illustrates the devastating impact of inadequate retirement planning.

The shadow that creeps up unnoticed

Many young individuals perceive retirement as a distant concern. However, this shadow, much like the darkness, creeps closer with each passing day. My father-in-law’s example illustrates this urgency: Starting a career at 25 and retiring at 65 means 480 paycheques. Living to 95 requires funding 360 months of retirement, highlighting the need for early and aggressive saving and investment.

Navigating the journey to and through retirement

Set clear goals: Define your retirement lifestyle and set achievable financial goals. Consider what you want your retirement to look like – whether it involves travel, hobbies, or spending time with family. Having clear goals helps you understand the amount of savings you need and the steps required to achieve those goals.

Create a budget: Develop a detailed budget that covers essential expenses such as housing, food, and healthcare, as well as discretionary expenses like travel and entertainment. A realistic budget ensures that you live within your means and helps you allocate funds effectively to meet your financial goals.

Eliminate debt: Focus on paying off high-interest debt, such as credit card balances, to free up more income for savings and investments. Reducing debt minimises financial stress and enhances your ability to manage expenses, especially during retirement when you might have a fixed income.

Build an emergency fund: Save enough to cover three to six months of living expenses. An emergency fund provides a financial buffer for unexpected events, such as medical emergencies or major home repairs, ensuring that you don’t have to dip into your retirement savings prematurely.

Invest wisely: Diversify your investment portfolio to balance growth and income. Consider a mix of stocks, bonds, and other assets to spread risk and maximise returns. Regularly review and adjust your investments to ensure they align with your retirement goals and risk tolerance.

Stay informed and flexible: Keep abreast of economic trends and financial news to make informed decisions. Be prepared to adapt your financial plan as circumstances change, whether due to market fluctuations, changes in personal health, or shifts in retirement goals.

Maintain well-being: Engage in physical and mental activities to stay healthy. Regular exercise, mental stimulation, and social engagement are crucial for a fulfilling retirement. Staying active helps you enjoy your retirement years and reduces healthcare costs over time.

Retirement planning, much like playing lawn bowls, requires strategy, patience, and foresight. By addressing it one step at a time, you can secure a comfortable and fulfilling retirement. At Family Wealth Custodians, we’re here to help you navigate these complexities and achieve financial freedom.