Business Brief

The PPS Group prides itself on offering life-stage financial planning solutions for graduate professionals with the flexibility to meet the various needs that different life-stages demand. Mature professionals, in particular, have many common interests and requirements that need consideration and active planning. This process typically starts from the age of 50 onwards.

It is a well-established personal financial planning principle that, generally around age 50, most professionals need to actively review their current financial plan emphasising two primary areas – future lifestyle and legacy provision. This effectively equates to a greater focus on retirement saving and wealth building, as well as consolidation and rationalisation of risk provision. In both aspects, the PPS Group’s range of solutions, services and products is particularly suitable. It also presents excellent planning and advice opportunities for our accredited financial advisers.

What are the common experiences we feel characterise the mature professional life stage? The following comments are very general, have implications for many professionals and expose opportunities for financial advisers.

By age 50, many professionals have well-established careers, practices and businesses. They are probably also in their highest income earning and wealth-creating years. Many in their 50s have educated children who become independent of their parents. The significant burden of education costs is mostly over and so is the period of paying-off large assets like houses/homes and other debts. Many professionals in this group have acquired great wealth by this stage and no longer need the same levels of income protection as was the case when they were younger. Their life cover and disability needs for the provision of family and dependents or for covering debt are also hugely reduced.

One thing all in this segment have in common is the need to make financial provisions for retirement and to invest for wealth building in a more focused way. This includes optimising all tax concessions and using specialist investment advice, tools and products. At this stage, planning a financial legacy becomes more realistic; thus, fiduciary services and advice take on greater prominence.

The PPS Investments (PPSI) platform, products and range of funds provide many real differentiators for PPS members and their families. A strong case can be made for consolidating mature professionals’ savings and investments with PPSI at this stage of life. Included are the advantages of vesting their PPS Profit-Share Accounts with PPSI after age 60 and continuing to enjoy Profit-Share allocations of all investment and retirement balances as well as on all remaining risk products until death.

Regarding reviewing risk cover needs, this should be done as early as possible while health considerations still allow for acquiring new and different cover. This could be for consolidation of cover purposes and for placing greater emphasis on whole-of-life cover that might be needed to guarantee a legacy plan or to meet health needs that are more urgent in later life. Cover for critical illness and functional disability are obvious examples. It is often a consideration to rationalise and balance permanent incapacity income needs with lump-sum products. One certain aspect is the need to use level premium pattern products at this stage to make premiums affordable throughout the rest of the member’s life.

Mature professionals can reap great benefit from continued financial advice and assistance. A service their PPS-accredited financial adviser is the best person to guide them.

By Rob Barge, Senior Manager: Life Broker Services Strategy & Marketing 

PPS is a licensed insurer conducting life insurance business, a licensed controlling company and an authorised FSP.

PPS Investments Group is a subsidiary of Professional Provident Society Insurance Company Limited (PPS),a licensed insurer conducting life insurance business, a licensed controlling company and an authorised FSP. PPS Investments Group consists of the following authorised Financial Services Providers: PPS Investments (Pty) Ltd (“PPSI”), PPS Multi-Managers (Pty) Ltd (“PPSMM”) and PPS Investment Administrators (Pty) Ltd (“PPSIA”); and includes the following approved Management Company under the Collective Investment Schemes Control Act: PPS Management Company (RF) (Pty) Ltd (“PPS Manco”). Financial services may be provided by representative(s) rendering financial services under supervision.