Small, Micro and Medium Enterprises (SMMEs) are major contributors to job creation and continue to be a critical driv...

It’s important for business owner to not only protect their own income but to safeguard the financial future of their...

<!-- wp:paragraph --><p><strong><em>SA’s best up and coming fintech startups sweated it out at a virtual demo day recently, where they had just 5 minutes each to convince a panel of judges that they should be part of the second phase of the <a href="https://www.alphacode.club/" target="_blank" rel="noreferrer noopener">AlphaCode Incubate</a> programme.</em></strong> </p><!-- /wp:paragraph --><!-- wp:paragraph --><p>The ten startups, which have just completed a three-month programme, competed for one of four places in an extended 6-month programme valued at almost R1,5 million each. Their success, which was validated by their ability to get traction in a short time, unlocks further funding of R500 000 each and tailored business support.</p><!-- /wp:paragraph --><!-- wp:paragraph --><p>Says Andile Maseko, head of ecosystem development at AlphaCode, “Despite a tumultuous year, a number of entrepreneurs saw how they could fill a gap in the market for financial services and related industries. Those selected in the top four earned the opportunity for further funding and mentorship. The first part of the intensive programme focused on entrepreneurship and refining business models. The second phase will focus on revenue generation.”</p><!-- /wp:paragraph --><!-- wp:paragraph --><p>In addition, these startups will be able to apply for seed capital from AlphaCode’s fund that invests in early-stage startups.</p><!-- /wp:paragraph --><!-- wp:heading {"level":3} --><h3><strong>The four promising businesses selected</strong></h3><!-- /wp:heading --><!-- wp:paragraph --><p><a href="http://www.agrikool.com/" target="_blank" rel="noreferrer noopener">AgriCool</a>&nbsp;is an e-marketplace that links smallholding farmers and buyers to a fair and reliable market. It offers farmers access to finance, reliable information on improving their production, and it works with both formal and informal markets. Street vendors, retailers, the hospitality industry can get fresh produce delivered, saving them transportation costs.&nbsp;Founder: Zamokuhle Thwala.&nbsp;Video:&nbsp;<a href="https://youtu.be/gyo-IOdzJ-0" target="_blank" rel="noreferrer noopener">https://youtu.be/gyo-IOdzJ-0</a></p><!-- /wp:paragraph --><!-- wp:paragraph --><p><a href="https://www.mybento.net/" target="_blank" rel="noreferrer noopener">Bento</a>&nbsp;is an out-of-the-box employee perks and benefits platform. It gives employers a simple and cost-effective solution to offer employee benefits without the cost and administrative burden. Employees are empowered to self-manage their benefits and perks which gives them freedom of choice over their remuneration structure and take-home pay.&nbsp;Co-founders: Claudia Snyman, Dennis Williams, Bryn Divey and Ross Horak.&nbsp;Video:&nbsp;<a href="https://youtu.be/4FU_1buiYYQ" target="_blank" rel="noreferrer noopener">https://youtu.be/4FU_1buiYYQ</a></p><!-- /wp:paragraph --><!-- wp:paragraph --><p><a href="https://www.alphacode.club/news/imfuyo-technologies-empowers-farmers-with-improved-oversight-of-their-operations" target="_blank" rel="noreferrer noopener">Imfuyo Technologies</a>&nbsp;is developing a smart farming solution that will give livestock farmers better oversight of their operations at viable cost points. The initial offering will consist of a smart&nbsp;tracker that will collect critical data about cattle location and behaviour. The data is analysed to enable farmers to optimise farming activities. The platform will also serve as a de facto cattle deeds office, providing better traceability across the beef production value chain.&nbsp;Through Imfuyo Technologies, livestock farmers also have better access to financial markets.&nbsp;Founder: Allasandro Da Gama.&nbsp;Video:&nbsp;<a href="https://youtu.be/jSJzGvspE6g" target="_blank" rel="noreferrer noopener">https://youtu.be/jSJzGvspE6g</a></p><!-- /wp:paragraph --><!-- wp:paragraph --><p><a href="http://matchkit.co/" target="_blank" rel="noreferrer noopener">MatchKit.co</a>&nbsp;helps athletes better commercialise their careers. The platform helps athletes make money, regardless of the status of&nbsp;sporting events. It integrates into&nbsp;existing social media channels and stats to&nbsp;showcase the value of an athlete’s digital audience&nbsp;to potential sponsors. It also offers a plug-and-play e-commerce store where fans can purchase everything from bespoke, branded merchandise to personalised video and audio shout-outs. MatchKit.co plans to add insurtech and transactional / virtual card capabilities to their offering.&nbsp;Founders: Mike Sharman, Shaka Sisulu, Bryan Habana and Ben Karpinski. Video:<a href="https://youtu.be/qKR1IM0QckQ" target="_blank" rel="noreferrer noopener">https://youtu.be/qKR1IM0QckQ</a></p><!-- /wp:paragraph --><!-- wp:paragraph --><p>Dominique Collett, head of AlphaCode and a&nbsp;<a href="https://www.rmih.co.za/" target="_blank" rel="noreferrer noopener">Rand Merchant Investments Holdings</a>&nbsp;(RMI) executive commented,&nbsp;“We have been very impressed with the level of drive of these ten startups who applied what they have learned on the AlphaCode Incubate programme as they focused on increased traction. The standard of these ideas gets better every year. It’s been a very intense time for the participants and we look forward to growing the four businesses.”&nbsp;&nbsp;&nbsp;</p><!-- /wp:paragraph --><!-- wp:paragraph --><p>Almost 200 fintech businesses initially applied for AlphaCode’s Incubate programme which aims to grow innovative financial services entrepreneurs and find the next OUTsurance or Discovery.&nbsp; Only ten were then selected to complete in the initial three-month programme that provided funding, guidance from performance coaches and a panel of advisory experts, access to AlphaCode’s co-working space, and opportunities to apply for further early-stage investment.&nbsp;&nbsp;</p><!-- /wp:paragraph --><!-- wp:paragraph --><p>The panel of judges included Willem Roos, former CEO of Rain and former founder of OUTsurance; Raymond Ndlovu, CEO of Community Investment Ventures with a stake in Vumatel; Dominique Collett, a fintech specialist and senior investment executive at RMI; Danie Matthee, the CEO of OUTsurance; and Mcebo Ntombela, investment manager at&nbsp;<a href="https://www.bafokengholdings.com/" target="_blank" rel="noreferrer noopener">Royal Bafokeng Holdings</a>. “The panel had a good mix of entrepreneurs and corporate execs who understand the digital landscape,” explained Maseko.</p><!-- /wp:paragraph --><!-- wp:paragraph --><p>One of the judges, Raymond Ndlovu, added, “The mix of businesses presenting this year was fascinating - a bit of everything from crypto to sports to stokvels and car repairs. The presentations were of a high standard taking into account the fact that we were all online. Look forward to the growth of all these promising businesses - whether they were selected for further incubation or not.”</p><!-- /wp:paragraph --><!-- wp:paragraph --><p>The AlphaCode Incubate programme has disbursed R32 million in funding to 31 black-owned financial services businesses over the past five years and is viewed as South Africa’s most prestigious fintech startup initiative.&nbsp;</p><!-- /wp:paragraph --><!-- wp:paragraph --><p>AlphaCode Incubate awards entrepreneurial packages to South Africa’s most promising financial services startups through AlphaCode with the support of Rand Merchant Investments and Royal Bafokeng Holdings.&nbsp;</p><!-- /wp:paragraph -->

<!-- wp:paragraph --><p><strong>By: Sanlam</strong></p><!-- /wp:paragraph --><!-- wp:heading {"level":3} --><h3>Sanlam’s brand reboot kicks off with a bigger, bolder purpose and team of inspirational Coaches to empower South Africans to live with financial confidence </h3><!-- /wp:heading --><!-- wp:paragraph --><p>Following the recent announcement of <a href="https://www.sanlam.co.za/campaigns/livewithconfidence/Pages/default.aspx" target="_blank" rel="noreferrer noopener">Sanlam's new brand promise</a> to empower millions of Africans to <a href="https://www.sanlam.co.za/campaigns/livewithconfidence/Pages/default.aspx" target="_blank" rel="noreferrer noopener"><em>Live with Confidence</em></a>, the continent’s largest non-banking financial services group has begun to put it into practice with the launch of an inspirational team of Confidence Coaches. The first in a series of initiatives that aims to empower consumers to live with the kind of financial confidence that makes a real and lasting difference. </p><!-- /wp:paragraph --><!-- wp:paragraph --><p>“At Sanlam, we believe confidence is the game changer that can greatly increase your chance of success. It unlocks possibility, motivates you to reach your full potential, and allows you to live your best life. Learning to live with this kind of financial confidence, however, is a journey, and this is exactly what our brand promise is all about. No matter where your starting point is, we're committed to equipping you with the right tools, support, and guidance to help you get from where you are to where you want to be,” says&nbsp;<a href="https://www.linkedin.com/in/sydney-nhlanhla-mbhele-cm-sa-5067b04/?originalSubdomain=za" target="_blank" rel="noreferrer noopener">Sydney Mbhele</a>, the Chief Executive of Brand at&nbsp;<a href="https://www.sanlam.co.za/Pages/default.aspx" target="_blank" rel="noreferrer noopener">Sanlam</a>.&nbsp;</p><!-- /wp:paragraph --><!-- wp:paragraph --><p><strong>Enter the Confidence Coaches&nbsp;</strong></p><!-- /wp:paragraph --><!-- wp:paragraph --><p>A diverse mix of five well-known personalities and influential voices who will share personal insights and offer practical tips on how to live with confidence, through a series of online conversations. &nbsp;</p><!-- /wp:paragraph --><!-- wp:paragraph --><p>“With the intention of connecting with South Africans in the most engaging way possible, we've partnered with personalities that we believe consumers will relate to and be inspired by – people who not only live confidently but do so no matter the challenges life throws their way,” Mbhele adds.&nbsp;</p><!-- /wp:paragraph --><!-- wp:paragraph --><p><strong>José&nbsp;</strong><strong>Mourinho&nbsp;</strong></p><!-- /wp:paragraph --><!-- wp:paragraph --><p>Leading the line-up is world-renowned coach,&nbsp;<a href="https://www.facebook.com/SanlamConfidenceCoach" target="_blank" rel="noreferrer noopener">José&nbsp;Mourinho</a>. Voted the world’s greatest football coach of the 21^st&nbsp;century,&nbsp;he&nbsp;has built a career on his exceptional ability to identify, nurture and develop confidence in others so that they can perform at their best. Through his journey,&nbsp;José&nbsp;has not only learnt how to handle success, but how to confidently bounce back from setbacks too. &nbsp;</p><!-- /wp:paragraph --><!-- wp:paragraph --><p>“We’re really excited to have&nbsp;José&nbsp;on-board as our lead coach and star of our new advert,” Mbhele continues, ”As an organisation operating in 45 countries in and outside the African continent, his broad appeal and personal connections with the continent makes him the perfect choice.”&nbsp;</p><!-- /wp:paragraph --><!-- wp:paragraph --><p>Fans will have the opportunity to connect with&nbsp;José for a one-on-one coaching session through&nbsp;<a href="https://www.facebook.com/SanlamConfidenceCoach" target="_blank" rel="noreferrer noopener">The Confidence Coach bot on Facebook Messenger</a>,&nbsp;to chat about goals, life plans and overcoming obstacles. He’ll make notes and share a unique takeaway and reminder with you afterwards: Your Confidence Rulebook.<br><br>&nbsp;</p><!-- /wp:paragraph --><!-- wp:paragraph --><p><strong>DJ Sbu</strong><br>From humble beginnings,&nbsp;<a href="https://www.instagram.com/djsbulive/" target="_blank" rel="noreferrer noopener">DJ Sbu</a>&nbsp;built himself up through sheer hard work and commitment. Rising to the top of his game as a TV personality, producer, DJ, and businessman, today he is one of the most admired and most watched entrepreneurs in the country. &nbsp;</p><!-- /wp:paragraph --><!-- wp:paragraph --><p>Followers will be able to&nbsp;<a href="https://www.instagram.com/djsbulive/" target="_blank" rel="noreferrer noopener">join in the conversation</a>&nbsp;across his social channels as he shares lessons on how living with confidence has been one of his biggest secrets to success. &nbsp;</p><!-- /wp:paragraph --><!-- wp:paragraph --><p><strong>Deborah Chambers</strong><br>Having only started her modeling career at the age of 53,&nbsp;<a href="https://www.instagram.com/deborah__darling/?igshid=1j72j6m1w8z95" target="_blank" rel="noreferrer noopener">Deborah</a>&nbsp;is an inspiring example of what can be achieved when you start truly living with confidence, believing in yourself and tapping into your potential. Guided by her mantra: You're never too old, and it's never too late; she'll be sharing more about her story across her&nbsp;<a href="https://www.instagram.com/deborah__darling/?igshid=1j72j6m1w8z95" target="_blank" rel="noreferrer noopener">social media channels</a>.&nbsp;<strong>&nbsp;</strong></p><!-- /wp:paragraph --><!-- wp:paragraph --><p><strong>Unathi Nkayi</strong>&nbsp;</p><!-- /wp:paragraph --><!-- wp:paragraph --><p>As a multi-talented woman in SA’s entertainment industry and a household name,&nbsp;<a href="https://www.instagram.com/unathi.co/" target="_blank" rel="noreferrer noopener">Unathi</a>&nbsp;is celebrated as one of the most influential and inspirational personalities in the country. Not without its fair share of ups and downs, Unathi’s road to success is testament to the power of hard work, focus and living with confidence.&nbsp;</p><!-- /wp:paragraph --><!-- wp:paragraph --><p>Audiences are invited to join her community on social channels to&nbsp;<a href="https://www.instagram.com/unathi.co/" target="_blank" rel="noreferrer noopener">engage in the conversation</a>.<br></p><!-- /wp:paragraph --><!-- wp:paragraph --><p><strong>Leandie du Randt</strong><br>As an actress, entrepreneur, and motivational speaker,&nbsp;<a href="https://www.instagram.com/leandiedurandt/" target="_blank" rel="noreferrer noopener">Leandie’s</a>&nbsp;passion and determination is infectious. She’s a living example of what can be achieved with the right attitude and an extra dose of resilience. To learn more, fans can&nbsp;<a href="https://www.instagram.com/leandiedurandt/" target="_blank" rel="noreferrer noopener">join in the conversation</a>&nbsp;across her social channels.<br><br>&nbsp;</p><!-- /wp:paragraph --><!-- wp:paragraph --><p>The campaign message is further reinforced in Sanlam’s&nbsp;<a href="https://www.youtube.com/watch?v=3Mc2IqXsNMU" target="_blank" rel="noreferrer noopener">new advert</a>&nbsp;(which has just gone live across digital channels and on TV) and through a series of Confidence Rules. Specifically developed to support all South Africans on their journey to financial confidence, these rules about life and finance offer an easy-to-follow, practical guide for consumers to apply in their daily lives from today.<br><br>“We wanted to keep it human, personal and authentic throughout,” says Mbhele, adding, “Rather than solely highlighting financial confidence, Sanlam has set out to inspire a better relationship with finances by first unpacking the significance of greater confidence in all aspects of life.”&nbsp;</p><!-- /wp:paragraph --><!-- wp:paragraph --><p>To this end, Sanlam’s collection of Confidence Coaches aren’t financial experts, but rather real people with real stories and life lessons to share. Drawing from their own experiences, each will talk&nbsp;<em>life</em>&nbsp;in the context of circumstances and important decisions. With all of these conversations and platforms ultimately working towards the bigger goal and purpose of Sanlam’s campaign: to help more and more people live their best lives and feel equipped to navigate the challenges that may come their way through financial confidence.<br><br>“Everyone wants to live with financial confidence, knowing they've got the best chance at a good life. But for many people, our call to live with financial confidence might seem overwhelming or even impossible,” reflects Mbhele. “But we’ve set out to offer really practical steps to get there – simple, actionable steps to help anyone along their journey.”&nbsp;</p><!-- /wp:paragraph --><!-- wp:paragraph --><p>To find out more and connect with the Confidence Coaches, visit&nbsp;<a href="https://www.sanlam.co.za/campaigns/livewithconfidence/Pages/default.aspx" target="_blank" rel="noreferrer noopener">livewithconfidence.co.za</a>. &nbsp;</p><!-- /wp:paragraph -->

<!-- wp:paragraph --><p>Recent data by&nbsp;<a href="https://www.lightstoneproperty.co.za/" target="_blank" rel="noreferrer noopener">Lightstone Property</a>&nbsp;shows that nearly 15% of homeowners who sold and bought homes in the three years leading up to 2020 have moved from cities to smaller towns.</p><!-- /wp:paragraph --><!-- wp:paragraph --><p>Most of these purchases from the Western Cape and KZN show the appeal of opting for a quieter setting within their respective provinces, but Gautengers are moving all over the country.</p><!-- /wp:paragraph --><!-- wp:paragraph --><p>Hayley Ivins-Downes, Head of Digital at Lightstone Property, says, “Most homeowners move to and from the Big Three provinces. However, nearly 84,000 homeowners sold and bought elsewhere between 2018 and 2020 – with 76% moving from city to city, 14% relocating from a city to a smaller town while 10% headed the other way.”</p><!-- /wp:paragraph --><!-- wp:image {"id":145971,"sizeSlug":"large"} --><figure class="wp-block-image size-large"><img src="https://cover.co.za/wp-content/uploads/2021/05/2-4.jpg" alt="" class="wp-image-145971"/></figure><!-- /wp:image --><!-- wp:paragraph --><p>Lightstone’s data reveals that movements from metro/city to metro/city have been declining over the years, from 22,919 in 2018 to 21,861 in 2019 to 19,005 in 2020. This is a significant number given the disruptions caused by Covid-19 and the lockdowns which restricted movement by people across the country.</p><!-- /wp:paragraph --><!-- wp:image {"id":145970,"sizeSlug":"large"} --><figure class="wp-block-image size-large"><img src="https://cover.co.za/wp-content/uploads/2021/05/3.jpg" alt="" class="wp-image-145970"/></figure><!-- /wp:image --><!-- wp:paragraph --><p>Nearly 12,000 homeowners left cities for smaller towns over the three years documented, with a slight decline from 2018 to 2019 (4,297 to 4,080) and then a more significant drop in 2020 to 3,502. Approximately 44% of homeowners relocated to smaller towns from Gauteng, followed by the Western Cape (between 26% - 30%) and KZN (11%-12%).</p><!-- /wp:paragraph --><!-- wp:image {"id":145973,"sizeSlug":"large"} --><figure class="wp-block-image size-large"><img src="https://cover.co.za/wp-content/uploads/2021/05/2.2.jpg" alt="" class="wp-image-145973"/></figure><!-- /wp:image --><!-- wp:paragraph --><p>In contrast, the number of homeowners moving from smaller towns to cities has been dropping over the past three years, from 3,031 (2018) to 2,658 (2019) and then to 2,262 in 2020.</p><!-- /wp:paragraph --><!-- wp:image {"id":145974,"sizeSlug":"large"} --><figure class="wp-block-image size-large"><img src="https://cover.co.za/wp-content/uploads/2021/05/5.2.jpg" alt="" class="wp-image-145974"/></figure><!-- /wp:image --><!-- wp:paragraph --><p>Ivins-Downes&nbsp;says, “Movement within provinces show that more homeowners bought in small towns in the Western Cape and KZN over the past three years, than left the cities. While in Gauteng many more left the cities compared to those settling in small towns.” The movement out of the major cities and metros in the Western Cape and KZN is lower than movement to the desirable smaller towns in these provinces (60:40). Meanwhile in Gauteng, the majority of people moving from a city to a smaller town is a far higher ratio (80:20).</p><!-- /wp:paragraph --><!-- wp:paragraph --><p>Lightstone’s information also shows the provinces of choice for those moving to small towns. The majority of people in the Western Cape and KZN who left cities for smaller towns stayed within provincial borders (WC – 81% average; KZN – 77%). While those leaving Gauteng’s cities were more evenly spread across the provinces, with the Western Cape and KZN being the most popular destinations outside the province, while Mpumalanga, Eastern Cape and North West were also well-liked destinations.</p><!-- /wp:paragraph --><!-- wp:image {"id":145975,"sizeSlug":"large"} --><figure class="wp-block-image size-large"><img src="https://cover.co.za/wp-content/uploads/2021/05/6.1-1.jpg" alt="" class="wp-image-145975"/></figure><!-- /wp:image --><!-- wp:paragraph --><p>Data indicates that the city or province of origin for homeowners now in small towns who left their home in the city for a new life in a smaller town, mostly do so in the province in which they already live.</p><!-- /wp:paragraph --><!-- wp:image {"id":145976,"sizeSlug":"large"} --><figure class="wp-block-image size-large"><img src="https://cover.co.za/wp-content/uploads/2021/05/7.jpg" alt="" class="wp-image-145976"/></figure><!-- /wp:image --><!-- wp:paragraph --><p>The majority – 85% in 2018, 91% in 2019 and 87% in 2020 – of homeowners who live in small towns in Gauteng moved there from a city in the province. Homeowners moving from the WC accounted for between 2-5%, while those from KZN accounted for between 1-3%.</p><!-- /wp:paragraph --><!-- wp:image {"id":145977,"sizeSlug":"large"} --><figure class="wp-block-image size-large"><img src="https://cover.co.za/wp-content/uploads/2021/05/8.jpg" alt="" class="wp-image-145977"/></figure><!-- /wp:image --><!-- wp:paragraph --><p>Almost 90% of homeowners who have settled in smaller towns in the WC have come from cities in that province or Gauteng. The remaining 10% is evenly spread among other provinces.</p><!-- /wp:paragraph --><!-- wp:image {"id":145978,"sizeSlug":"large"} --><figure class="wp-block-image size-large"><img src="https://cover.co.za/wp-content/uploads/2021/05/9.jpg" alt="" class="wp-image-145978"/></figure><!-- /wp:image --><!-- wp:paragraph --><p>Approximately 90% of homeowners who have settled in smaller towns in KZN have come from cities in that province or Gauteng, with 7% relocating from the WC and the balance spread across other provinces.</p><!-- /wp:paragraph --><!-- wp:paragraph --><p>The types of properties homeowners opted for when they relocated to a smaller town in KZN in 2019 was freehold, while in 2020 slightly more chose sectional title. Estate living came in third in both years. This is significantly different in the WC, where the vast majority of homeowners chose freehold, followed by estate living with limited numbers opting for sectional title.</p><!-- /wp:paragraph --><!-- wp:image {"id":145979,"sizeSlug":"large"} --><figure class="wp-block-image size-large"><img src="https://cover.co.za/wp-content/uploads/2021/05/10.jpg" alt="" class="wp-image-145979"/></figure><!-- /wp:image --><!-- wp:paragraph --><p>It is interesting to note that homeowners moving from Gauteng to smaller towns overwhelmingly preferred freehold and estate living over sectional title.</p><!-- /wp:paragraph --><!-- wp:image {"id":145980,"sizeSlug":"large"} --><figure class="wp-block-image size-large"><img src="https://cover.co.za/wp-content/uploads/2021/05/11.jpg" alt="" class="wp-image-145980"/></figure><!-- /wp:image --><!-- wp:paragraph --><p>Ivins-Downes adds, “Information on the preference variations boil down to availability and price. In KZN, the availability of housing in estates is on average more expensive than the other provinces, and so there is not the spread of price options that is available in the Western Cape and Gauteng. Interestingly, we see that there was almost no sectional title or estate stock available in Gauteng, while the Western Province had 10% availability in estate properties and KZN had 14% availability in sectional title properties.”</p><!-- /wp:paragraph --><!-- wp:image {"id":145981,"sizeSlug":"large"} --><figure class="wp-block-image size-large"><img src="https://cover.co.za/wp-content/uploads/2021/05/12.jpg" alt="" class="wp-image-145981"/></figure><!-- /wp:image --><!-- wp:paragraph --><p>If we take a look at who is moving, where and what are they buying, the majority of homeowners (63%) who moved in 2020 were between 45-65 years in age (2019: 62%), and most of those moving are buying mid-value (58%, 2019: 57%) and high-value homes (32%, 2019: 31%).</p><!-- /wp:paragraph --><!-- wp:image {"id":145982,"sizeSlug":"large"} --><figure class="wp-block-image size-large"><img src="https://cover.co.za/wp-content/uploads/2021/05/13.jpg" alt="" class="wp-image-145982"/></figure><!-- /wp:image --><!-- wp:paragraph --><p>If we take a look at the towns in favour, we see quite a different picture from the rest of the country compared to the WC,” says Ivins-Downes. “The top three choices for those moving from Gauteng to KZN were Margate, Port Shepstone and Ballito. &nbsp;While those relocating within KZN chose Howick, Ballito and Salt Rock. Interestingly, Port Edward and Southbroom were among the favourites for those coming from Gauteng but did not make the KZN relocation list, while Howick nor Hilton were not favoured by those moving from Gauteng.</p><!-- /wp:paragraph --><!-- wp:paragraph --><p>“Those relocating from within the province’s borders and those coming from Gauteng shared a liking for Groot Brakrivier, while the other top choices for the WC were Langebaan, Hermanus and St Helena Bay. The top four choices for those moving from Gauteng were as mentioned Groot Brakrivier, and then Hermanus, Plettenberg Bay and Knysna.</p><!-- /wp:paragraph -->

<!-- wp:paragraph --><p><strong>By: Just</strong></p><!-- /wp:paragraph --><!-- wp:paragraph --><p>If your retirement savings were invested in balanced funds through the market turmoil of 2020, there is some good news. You can currently secure a guaranteed income for life that is over 15% higher than it would have been had you invested on the 1^st&nbsp;of January last year&nbsp;before the market crash; an income that targets growth in line with inflation.</p><!-- /wp:paragraph --><!-- wp:paragraph --><p>“This demonstrates the value of establishing a robust retirement plan and sticking to it, especially through market turmoil,” says Deane Moore, CEO of retirement income specialist&nbsp;<a href="http://www.justsa.co.za/" target="_blank" rel="noreferrer noopener">Just.</a></p><!-- /wp:paragraph --><!-- wp:paragraph --><p>“By contrast, if you were one of the many investors who became unsettled and switched to more conservative options, you would have watched your portfolio lose about 15% during March/April last year.&nbsp; Furthermore, you would have locked in your losses and missed out on the subsequent market recovery,” says Moore.</p><!-- /wp:paragraph --><!-- wp:paragraph --><p>It is estimated that South Africans lost&nbsp;<a href="https://retail.momentum.co.za/documents/campaigns/effectofcovid/covid-19-investor-behaviour.pdf" target="_blank" rel="noreferrer noopener">R100 million</a>&nbsp;of their savings overall between April and December of 2020 by switching funds.&nbsp; After many investors moved their savings into cash, SA equities delivered a huge 54% return in the 12 months to March 2021, which many missed out on.</p><!-- /wp:paragraph --><!-- wp:paragraph --><p>If you switched to more conservative investments inside of a standard living annuity, you would have negatively impacted your retirement income, which would already have been affected by the five years of relatively poor market returns that preceded 2020.</p><!-- /wp:paragraph --><!-- wp:paragraph --><p>“This exposes the risks associated with standard living annuities where, because you can change investment decisions, you carry your own investment risk and your own longevity risk, which is the risk of your money running out of road before you do.”</p><!-- /wp:paragraph --><!-- wp:paragraph --><p>Unfortunately, according to Just’s 2020&nbsp;<a href="https://retirementinsights.co.za/lack-confidence-seek-security/" target="_blank" rel="noreferrer noopener">Retirement Insights</a>&nbsp;survey, many retirees fell into this camp.&nbsp; Only 40% of respondents said they were content that they have enough retirement savings to last for their whole retirement. The survey showed that many retirees realised that they can’t afford the effects of market volatility, and some shifted some of their capital to lock in what they could.&nbsp;&nbsp;&nbsp;<s></s></p><!-- /wp:paragraph --><!-- wp:paragraph --><p>So, if you are facing retirement, Moore offers some tips to consider: </p><!-- /wp:paragraph --><!-- wp:paragraph --><p><strong>1. Think about your retirement savings in two pots</strong></p><!-- /wp:paragraph --><!-- wp:list --><ul><li>A pot to ensure you have enough income to cover your essential expenses for life.</li><li>A second pot for discretionary spending or to leave a legacy.</li></ul><!-- /wp:list --><!-- wp:paragraph --><p><strong>2. Choose appropriate investments for each pot&nbsp;&nbsp;</strong></p><!-- /wp:paragraph --><!-- wp:list --><ul><li>An appropriate investment for the first pot is a life annuity, which you can access as a standalone product or as an investment choice within certain living annuities.</li><li>Once the first pot is secured, you can consider options that provide flexibility, growth, and a legacy for beneficiaries.</li></ul><!-- /wp:list --><!-- wp:paragraph --><p><strong>3. Choose the right life annuity</strong></p><!-- /wp:paragraph --><!-- wp:list --><ul><li>New-generation with-profit annuities are designed to withstand market conditions to guarantee your income for life, while providing&nbsp;annual increases&nbsp;linked to the performance of a balanced fund.</li><li>You can use your retirement savings or discretionary savings to invest in these annuities.</li><li>As mentioned above, you can also access a life annuity in certain living annuities through some of South Africa’s leading living annuity providers.</li></ul><!-- /wp:list --><!-- wp:paragraph --><p><strong>“</strong>Because long-term interest rates are high, it's a good time to lock-in a retirement income for life, particularly if your savings benefited from recovering markets because you stuck to a sound investment plan,” Moore concludes.</p><!-- /wp:paragraph -->