FINANCE: More Younger South Africans Planning Future Finances
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Half of world’s largest independent financial advisory company's clients in their 30's prioritising estate and retirement planning
People are starting to plan their future finances at a younger age, according to one of the world’s largest independent financial advisory organisations.
In the past year deVere Group, which has more than 80 000 clients globally, has found that more than half of their clients who are in their thirties are now prioritising estate planning alongside retirement and other financial planning.
deVere Group’s founder and chief executive officer Nigel Green attributes this to the fact that the third decade is a time in a person’s life when they have, or are starting, a family and therefore realise they need to prepare to leave “a decent legacy to their children”.
“Passing on to our children all we can is, of course, a human instinct,” adds Green.
“To do this, it is imperative to start planning when you reach your earning peak, or when you can afford to put more aside, which for many people is in their thirties.
“Be it property, stock market investments, family heirlooms, or any other major assets, it is important to ensure there is a plan in place for those you leave behind.”
Here in South Africa many young people are now looking a long way ahead in their financial planning, often requesting advice on estate planning when meeting with their wealth management advisors. In fact, it has for many become as important as retirement and education planning.
The reason for the recent spike in interest in planning ahead, according to Green, is the result of a year of economic turmoil in the country, as well as the rising cost of living and the fluctuating Rand.
“People are increasingly aware that a secure financial future is not simply a given, and that it is important to set yourself up for security for you and your family. With the current economic climate, coupled with the fact that people now have more access to information to help them prepare, it’s no surprise people are starting to think far to the future,” Green adds.
In terms of funding for the future and investing wealth for the best outcome, Green says he has found that many people in South Africa are unaware of the international investment option.
He continues: “In the United Kingdom, 46 per cent of investors choose to invest abroad in order to properly diversify their portfolios.
“But it’s our experience that not nearly as many people here in South Africa are aware of their options for international investment. They don’t know they’re able to invest in the United States, UK or Continental European stock markets and currencies - currencies that are likely to prove stronger than the Rand in the long term – in order to be able to save or pay for ever-increasing expenses at home.
“Traditionally, it has long been the over 60s who seek advice on the subject of estate planning. It’s not just for the people who are older or wealthier,” he adds. “We have always advised our clients that estate planning should play an integral part in their long-term financial strategy.”
Business News Sector Tags: Finance|