So, you’re a government employee, and you’re thinking about retiring or resigning. Let me ask you this:
- Do you want to ensure you’re choosing the best path?
- Do you want to minimize your tax burden?
- Most importantly, do you want to secure your financial future and ensure your money never runs out?
Now, are you open to advice from a trusted specialist, or do you feel like you’ve got it all figured out?
Let me share a story. Last month, I connected with a government employee ready to invest 6 million Rand. He reached out to secure his future, but—surprisingly—I turned him down. Why? Because he was stuck in what I call the Five Deadly Doubts, beliefs that made it impossible for him to fully commit to a financial plan. Without commitment, even the best advice is wasted.
Curious if you’re holding on to any of these doubts? Let’s explore them—and, more importantly, how you can overcome them.
1. Fear of Change
Change is uncomfortable. If you’ve been managing your finances a certain way for decades, switching things up can feel daunting.
But here’s the truth: sticking to the same financial habits might cost you dearly, especially when it comes to paying unnecessary taxes or missing out on secure investment opportunities.
My goal is to help you:
- Legally reduce your tax liability.
- Secure your capital, especially if you’re resigning.
- Create a legacy for your loved ones.
Sometimes, this requires adjusting your approach—taking a detour for better results. Are you open to doing things differently if it means gaining better financial security?
One government employee wasn’t. He didn’t want to alter his financial habits, and I had to walk away. Why? Because when he pays hundreds of thousands in tax down the road, he might blame me for not being more forceful. Instead, I choose to work with those ready to embrace change for the better.
2. Lack of Trust
This is a big one. Many government employees have had bad experiences with financial planners in the past, leading to skepticism.
I understand this. One member I worked with had already dealt with five advisors, each offering conflicting advice. It left him confused and unwilling to trust anyone.
But think of it like a bad meal at a restaurant. Just because one dining experience was poor doesn’t mean all restaurants are bad. What do you do?
- Get referrals.
- Check reviews.
- Test the waters—book an introductory session to see if there’s a good fit.
The same applies to financial planning. It’s okay to test a specialist like me. You don’t need to commit money—just your time.
3. Penny Wise, Pound Foolish
Many people get stuck on the cost of good advice, forgetting the bigger picture. Let’s say the cost of planning your resignation is R100,000. That might feel steep until you realize the tax savings could exceed R1 million.
Good advice should pay for itself by:
- Saving you on taxes.
- Growing your capital to cover costs and income needs.
The key is to focus on value, not cost. Choose the option that maximizes your benefits and leverage.
4. Listening to the Wrong Voices
Pressure from colleagues, family, or friends can make decisions harder. Perhaps they’ve had bad experiences or fear the unknown.
The solution? Plan for yourself. It’s your future—not theirs. You’ll know when you’ve connected with someone genuinely interested in helping you. Trust your instincts and focus on your goals.
5. Fear of Losing Control
Retirement or resignation planning might feel like giving up control—but it’s quite the opposite. With the right plan, you’ll stay fully in control:
- Adjust your lump sum withdrawals.
- Fine-tune your income annually.
- Optimize your tax payments.
- Decide where to invest and who to work with.
Planning correctly puts you in the driver’s seat, ensuring your financial future stays in your hands.
Overcoming the Five Deadly Doubts
By recognizing and addressing these doubts, you can unlock a secure financial future. Ask yourself:
- Am I open to change?
- Can I build trust with the right specialist?
- Am I focusing on value, not cost?
- Am I listening to the right voices?
- Am I ready to stay in control?
If this blog resonated with you, ready to take control of your finances? Click here to schedule your one-on-one consultation and let’s create a plan tailored to your needs.
Disclaimer: Retirement Wellness SA is an Authorised Financial Services Provider – FSP 31609. The information provided is not from or on behalf of the Government Employees Pension Fund.
