A retirement conversation needs assumptions, not only a reassuring target. The advisor should be able to show how current capital and contributions become a possible future income.
Focus on spending, tax, inflation, return, fees, retirement date and lifespan. Ask which income is guaranteed and which depends on investment performance. If a choice may be difficult to reverse, identify that before implementation.
Take these questions
- What after-tax monthly income is the plan trying to support?
- Which spending and inflation assumptions are being used?
- What happens if I retire earlier, live longer or earn lower returns?
- Are all retirement accounts and other income sources included?
- What are the total costs before and after retirement?
- Which income could reduce during poor markets?
- Which decisions are irreversible?
- When will the plan and drawdown be reviewed?
Try this now
Ask for three scenarios on the same page: expected assumptions, a less favourable sequence and a longer lifespan. Make sure figures are clearly labelled as today’s or future rand.
Retirement projections organise uncertainty; they do not eliminate it. A good meeting leaves you understanding the levers and trade-offs, not memorising one capital number.
Next: Insurance promises are contractual, not conversational