When people keep making the same financial mistakes, it’s time to try something new
By Kenny Rabson
CEO, Discovery Invest and Employee Benefits
The retirement savings gap in South Africa is well documented - and alarming. Financial services providers, regulators and consultants unanimously agree that most people don’t retire with enough savings to live out the rest of their days. As medical technology advances and people live longer, the problem will continue to grow.
Although there has been progress in making retirement solutions more accessible, too often, people’s behavioural biases and personal financial choices result in insufficient retirement provision, causing them to rely on family members or debt to sustain themselves.
This makes the need for pioneering models that close the retirement gap so much more important for investors and their financial advisers. We've done the research, and the findings are undeniable: while factors like lower fees and performance are sensible considerations when choosing a retirement fund provider, it's financial behaviours relating to contribution levels and savings terms that really make or break retirement outcomes. These are further impacted by the financial and qualitative effects of lifestyle choices. All three of these factors are, in varying degrees, within the control of the investor.
Because it comes down to individuals' choices, there's hope. A powerful behavioural insight reveals that by rewarding positive savings behaviour, people can change. The somewhat bleak outlook of the average investor can be transformed.
For investors who truly want close their retirement gap, there is finally a solution - a world-first one that is structured on behavioural economics. Discovery applies known behavioural techniques in a ground-breaking way, making it much easier for investors to make smart choices and secure their financial futures.
Discovery is proud to introduce the first retirement solution to build a nation of wealth creators who won't just retire well themselves, but will also enable future generations to do the same. Are you with us?
This article is meant only as information and should not be taken as financial advice. For tailored financial advice, please contact your financial adviser. Discovery Life Investment Services Pty (Ltd): Registration number 2007/005969/07, branded as Discovery Invest, is an authorised financial services provider. All life assurance products are underwritten by Discovery Life Ltd. Registration number: 1966/003901/06. An authorised financial service provider and registered credit provider, NCA Reg No. NCRCP3555. Product rules, terms and conditions apply. The views expressed in this article are those of the author and may not necessarily represent those of Discovery Invest.