Rethinking Retirement: A conversation with Dr Sara Carnazzi Weber

That's what Dr Sara Carnazzi Weber, Head of Policy and Thematic Economics at Credit Suisse.

We sat down with this leading economist and retirement expert to get to know her better and learn how she's helping people rethink retirement.

Q: What drew you to this field of study and what compelled you to stay?

I find it very interesting. Way back in university, my doctoral thesis was on demographics, migration, and how people in Switzerland decide why, when and where to retire. I then started working at the Credit Suisse research department and could see data, trends and experiences from micro to macro perspectives. In other words, from entire countries struggling to finance pensions, to individuals trying to optimise their personal investments. There's so much to analyse - that's what keeps me interested.

Q: People around the world are living for longer - and this is especially true for those with healthy, active lifestyles. How do they need to rethink retirement?

The good news is they can enjoy more years with a better quality of life. But the challenge is - can they afford those extra years? They should ask themselves questions like, "Am I managing my pension funds appropriately? Should I build up my private savings or invest more aggressively? Can I work for longer, or adapt the way I work, how much I work, or what I do?' Staying healthy and earning an income for longer means you can keep contributing to your retirement savings to fund those extra years.

Q: What can South Africa learn from what's already been tried in the rest of the world?

People in developing countries like South Africa are more familiar with idea of lifelong work, so they can transition from - or even skip - the mindset of the three-stage model more easily. With a relatively young population and workforce, there are opportunities now to put sustainable systems in place that offer a basic level of security in old age, that are compatible with flexible working models, and that promote a culture of saving.

Q: Practically speaking, how does one teach the next generation about saving?

I'm a mother of one and I've tried to teach my son the value of money as early as possible. If he wants to spend money on a toy, I'll ask him "Did you know with the same amount you could also get two of this, or half of that?" I'm just trying to sharpen his perception of what's possible, and help him understand money is not everywhere, it's limited, so appreciate its value. And when he saves and it grows a little each year, we celebrate that progress.

To promote a culture of saving more broadly, it's really important to make people aware of the danger of debt, and how it can limit their options in the future. Young people don't always fully understand the risks of indebtedness - they feel it's ok, they can pay it back - but this is something we should address both in families and in schools.