The real cost of a holiday

TWO-POT RETIREMENT SYSTEM: RATHER SAVE OR USE YOUR CREDIT CARD FOR DECEMBER BREAK

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It is that time of the year when everybody gets ready to go on holiday - everybody but you because you cannot afford it. But you can withdraw from your retirement savings under the two-pot retirement system and fund your holiday that way. Is that a good idea?

This is definitely not a good idea, says Therese Havenga, head of business transformation at Momentum Savings.

"I usually sleep too late when it comes to booking a holiday. I am so task-oriented at work that holiday times seem to creep up on me. Last year, I had to take my family to a farm close to the seaside because we could not get a dog-friendly place to stay in a coastal town at such a late stage," says Havenga.

"The worst was that there was no Wi-Fi, no signal and no electricity. How must teenagers plan their days, then? I was not popular."

Havenga says this also meant that they had to travel more than anticipated and spend more time in restaurants to eat cooked food (where there was Wi-Fi). "So much for trying to save up and budget ahead of time."

Now, she says, with so many changes in the financial landscape, she has been wondering what people do who do not save and plan for holiday expenses upfront. "Can they afford to take last-minute chances, like I do with booking a place?"