New regulation in the finance sector
As a retirement life coach, I often get to speak alongside a financial advisor at workshops planned for employees who are close to retirement age from their fund. I started to notice a deep sense of heaviness that many feel after the finance section. I always ask to speak after the financial person and to try and lift the emotion in the room from one of despair to hope. I try and help them see a new sunrise rather than a sunset for their lives.
I have grappled with this for more than ten years now. It has been a gap that is not adequately filled by the trustees of a fund in educating their members around financial literacy and from the members side not taking enough personal responsibility for their own retirement investment journey. This education cannot happen a few months before retirement but should be a process of financial and life planning from the onboarding process. We are living longer and do not have the security of the workplace that existed 20 years ago.
March 2019 brings a new regulation for all members of Pension, Provident funds and Retirement Annuities. Each member of a fund needs to have a coaching session with a financial planner to ensure that the member understands the choices they are making. This may be a small step in the right direction, but I want to challenge business, trustees and the financial sector to ensure that adequate coaching is offered to members. Most members do not know enough to make this decision. The money is a very important part of the process, but many life related issues also should be included to ensure a more stable future for our older citizens.
I want to suggest a range of workshops that may help equip members and families to make better decisions just before retirement.
• Where do you want to live?
• Do you need to design a second career?
• Are you looking after aging parents and do you still have family at home?
• Have you got adequate medical cover?
• What do you plan to do with the extra years in retirement due to longevity?
• Do you need to re-skill to keep earning?
These life questions need time and discussion with family and cannot be done around a single coaching session.
New regulations can make a significant difference to individuals. I implore the sectors involved in this legislation to ensure that they have thought through the challenges and improve the lives of their members and clients.
Building a sustainable, healthy nation is key in the world of longevity.