As government offers early retirement packages without penalty, we have public servants who, suddenly after about 40 years in service of our country, are going to wake up in a couple of months with thousands of Rands in their bank accounts. For some, this is the first time in their lives that they will have so much money to handle. I am hoping that this newsletter will help those who want to make the most of this money.

Over the years, I have worked with people and their money. It is not everyone who can handle large sums of money. There is a lot of excitement that comes with having lots of money in your account, especially when you are not used to it. So be prepared. Manage the excitement very well. Also be aware that some of your loved ones are also looking forward to this big pay day. You must understand that if you don’t plan how you are going to spend this money and stick to your plan, chances are you are going to wake up before the end of 2026 and realise that you have nothing left and you are living from hand to mouth as if you never had the money in the first place.

Here are a few tips;

• Understand that this is most likely the very last time you are going to have so much money in your bank account. So treat this money with due care and do your best to ensure it serves you and your needs for the long term
• Draw a plan of how you are going to spend the  money. There is no one – size – fits – all  plan but below are a few suggestions and hopefully yo will find at least one of these useful:

• 1. Pay off all your debts, if you have debt. Negotiate now for early settlement discounts so you get some discount with paying the debts  off early
  2. If you have a home loan, inform your bank that you will be paying off the bond because some banks require written notice else you might be surprised with an early settlement penalty. Sounds absurd but it does happen
  3. Cut those credit cards, you don’t want to be on pension and still buying stuff on credit
  4. You might be here over the next 30 to 40 years so  contact a Financial Advisor to help you invest some of the money so you withdraw it as and when needed. But let it grow for now until you need it
  5. If you still have kids at school, remember to invest some of the money for school and varsity fees
  6. Do something for yourself that makes your heart happy, be modest though
  7. Some pensioners are now into poultry farming or simply buy and sell chicken. I know others who are baking and selling cakes, etc… It would be wise to do something you love in your old age  that will keep you busy and still earn you some money.        
  8. If you must renovate your home, please don’t be excessive
  9. Join a walking or running club or start gardening. Keep moving. There’s no point in having money you can’t enjoy because you are bored and start feeling sick and old
  10. Last but not least, share a tiny little bit of  it with your loved ones. Pity there’s so much youth unemployment and you might still have to take care of your adult kids

• Stick to your plan
• If I were you, I wouldn’t tell a soul when the money is deposited into my bank account. I would wake up on that day and go to my laptop or to the bank to do exactly what is on my plan
• I would come back home with lots of meat and other groceries and we throw a braai on the day

Wishing you a happy and fulfilling retirement. Contact us for your retirement planning!