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Current research shows that less than 10 percent of all South Africans retiring are financially independent, Johan Gouws, from Absa Investments: Multi Management, told a senior customer financial seminar hosted by Absa in Johannesburg on Thursday.

Gouws said there are various reasons for this: low financial literacy where people do not understand concepts relating to real returns and compound growth; people who are not able to save; waiting to long before they start saving and deviating from their long term investment strategy.

"To avoid this situation you need to look at three elements of holistic financial planning across the various stages of your life. Depending of the stage in your life each element will have a different level of priority.

When looking at the stages in our lives from birth to death, we can identify four distinct phases. The main elements of financial planning, being wealth preservation, wealth protection and wealth creation, need to be considered during each of these phases.

"However, each stage of our lives requires a specific focus when we come to the different elements of our financial needs," said Gouws.

Gouws also added that retirement is a traumatic experience for many as it leaves them with a sense of loss in terms of their contribution at work, their sense of belonging and the security of a monthly income.

"For this reason retirement is many times viewed as a definitive point in one's life. It is a phase of vulnerability which impacts on our ability to make rational decisions. However, the transition from the pre to the post retirement should not require major adjustments if planned well in advance,' he said.

Keith McIvor, Managing Executive: Customer Solutions, Products Pricing and Distribution at Absa said: "We are mindful that our senior customers are worried about staying financially fit during retirement. They are also price sensitive in terms of banking fees and interest rates on investment products.

"With the unique needs of these customers in mind, the seminar will unpack relevant issues like managing retirement, investing during retirement and looking at Absa solutions available post retirement," he said.

Absa launched its 1st Senior Customer Financial Seminar today and the seminar aims to provide the senior customers with valuable knowledge and insight into services and products designed to meet their specific needs.

Of Absa's deposit book, more than 50 percent is contributed by customers over 55, making the seniors market one of the most valuable to Absa.

The South African seniors market comprises approximately 5.3-million people (17 percent of the adult population) of which an estimated of 2.8-million people of this market is currently banked.

This seminar will be an annual event in Gauteng and Absa will host several different senior events throughout all provinces.

'Absa recognises the needs of the senior customer and will ensure that these customers receive the correct financial advice based on their individual needs.' says McIvor.