Fikile Shezi, Employee benefit consultant, 10X Investments presented at the 10X Retirement Conference 2014 on the topic Constructing a sensible pre-retirement plan

1. Pre-Retirement Planning Guide
and the Retirement Calculator

2. HEADING
Pre-Retirement Planning Guide & the Retirement Calculator
Agenda
1.Overview: The RSA Retirement Industry
2.Pre-Retirement Planning Checklist
3.10X Pre-Retirement Planning Guide
Set a Goal
Consider your Savings
Investment Portfolio
Am I on track?

3. The RSA Retirement Industry
Agenda
•The South African Retirement industry amongst the largest in the world relative to GDP
The total assets of the Private Sector Pension fund exceed R1 trillion
R2.4 trillion in assets if GEPF is included. (RSA Treasury Discussion paper C)
Yet the success rate in terms of individuals who retire comfortably is only about 10%.
•Does the industry really serve the members’ interests?
•As a member, do you have the right plan?
90% of retirement failures = NO plan or WRONG plan
10X Investments empowers member through education and planning tools.

4. As a member, where do you begin?
Plan never to retire or use the 10X planning tools

5. Pre-retirement Checklist

6. www.10x.co.za

7. With the right plan= better outcome even if you can’t meet desired goal

8. • If you were headed off on an journey
you’d first need to know where you
were going.
• Same with retirement, you must know
how much you will need to live
comfortably when you retire.
• As a minimum target, 10X
recommends that your retirement
income replaces 60% of your final
paycheck, growing with inflation.
Step 1: Set a goal

9. How do you arrive safely? Keep your
eyes on the road
•As the driver of your retirement plan,
the safest way is to meet your retirement
goal is to start early and save for as long
as possible
•There are variables you can control such
as :
-Lowering your retirement goal
-Retiring later or saving more
Step 2: Save as much as you can for as long as possible

10. To reach you destination, you fill up
regularly
•Likewise, the more money you save and the
longer you save, the more likely you will reach
your retirement goal.
•10X recommends that you save at least 15% of
your salary for 40 years. That’s 15% of every
paycheck-from your first to your last.
How much is enough?

11. Go the extra mile!
•Unlike cars, investment becomes increasingly
more valuable as they clock up miles. Calculation
example:
•If you save R1000, for 40 years and receive a 5%
return on your investment each year. You will
have R1,5 million.
•Under the same conditions for only
20 years, you will have only R400 000.
Increasing your investment period from 20 to 40 years, almost
quadruples your final investment!

12. Which investment vehicle is right for you?
•Cars may be different but their one fundamental
function is ..transportation.
•Question is, which one is designed right for the journey?
Should you switch investment vehicles?
At 10X your car is designed to provide you with the best
chance of arriving safely at your retirement destination.
10X offers no confusing choices. The 10X Life-stage
portfolios automatically invest your savings based on
your
age and expected retirement date.
Step 3: Your Investment vehicle should aim to maximize your retirement pot at
retirement

13. Why do fees matter?
•As part of any long journey, there will be unavoidable
fees payable e.g toll fees. Fees also apply to your
retirement.
•The South African industry fees are on average 2.5% pa
(plus VAT) of your retirement. Some of these fees are
complex and not disclosed upfront.
•10X charges low fees at a maximum of 0.9% (plus VAT)
•Every 1% saving in fees increases your final
investment value by 30%.
Avoid unnecessary and punitive fines on your retirement journey

14. Step 4: Am I on track?

15. Step 4: Am I on track?

16. Receive you plan via email, print your plan and update next year

17. Thank you