Longevity planning is all about ensuring that you're financially prepared to live a long and fulfilling life, even as you grow older. Globally, life expectancy is increasing due to advancements in healthcare, so planning for that is becoming even more important. After all, where’s the joy in living longer if you can’t live comfortably, right? To ensure you reach a ripe old age and can still keep up financially, we’ve got a few tips on how to kickstart your longevity planning journey.

Think about retiring right now

Nope, we don’t mean you should quit your job – only that you start thinking about your retirement plan decades before you plan to do it. A good rule of thumb, assuming you want to retire at 55, is to estimate that your financial needs per year would be at least 75% of what you currently earn and then times that by 25 to account for living to 80.

As an example, if your current living expenses are R15 000 per month which is R180 000 per year, 80% of that is R135 000 per year. Now times that by 25 and you’re looking at R3 375 000. While that amount might seem huge, if you’re saving over a long period of time and benefit from compound interest, it’s doable. But again, you’d have to start saving early. Obviously, the best retirement strategy for you will depend on your unique situation, but we’ve got some advice on potential options over here.

Secure your wishes with a Will

Most South Africans don’t have a Will and we’d like to change that. Having a Will ensures your assets are distributed the way you want them to be. Without one, your estate gets divided in accordance with the Interstate Succession Act in a way you might not like. This process can also take an incredibly long time, up to years, and in the meantime, your family will have no access to your money as all your assets will be frozen. Having a Will also means that you, not the court, can appoint legal guardians for minor children.

If you’d like to protect your family’s financial future, apply for a Will with MiWayLife today.

Safeguard your family’s financial future with life insurance

Something else to consider when you’re longevity planning is life insurance and, at MiWayLife, we like to keep it simple. For one low monthly premium, you’ll be offered a set amount of coverage that’s paid out in a lump sum to your beneficiaries in the event of your passing. The cover under this benefit will grow by 5% each year to ensure you keep up with inflation. As mentioned, having a Will speeds up the process of wrapping up your estate, but this still takes time. Life insurance, however, pays out within weeks. It’s a wonderful safety net for your family and, depending on your cover amount, can even secure their financial future.

Protect yourself against the cost of terminal illness

The longer we live, the greater the risk of developing a terminal illness becomes. Fortunately, MiWayLife’s life insurance policies all include an accelerated terminal illness benefit. This way, if you’re diagnosed with a terminal illness and are likely to pass away within a year, you’ll have the option of immediately claiming 50% or 100% of your life cover amount. This can go a long way towards covering expenses that medical aid might not or simply ensuring you’re more comfortable and not weighed down by financial burdens while enjoying every precious moment with your family.

While none of us will live forever, some of us might live for a long time, which is why longevity planning is essential to prepare for a long and happy life you can enjoy with greater peace of mind.

Did You Know:

You can now take out life cover with us online in a few simple steps. No calls and no agents! Make sure to take care of those you love today by buying MiWayLife cover online.