As South Africa’s population ages and life expectancy increases, retirement is becoming a phased, multi-decade journey that demands thoughtful planning, emotional preparedness, and strategic financial insight.
Here is how retirees can live meaningfully in the “last third” of life – by having the freedom to choose how they want to live, independently, while creating a legacy that truly reflects their values.
Your children need your independence
According to recent research, 43% of SA adults financially support their parents while raising their own families, creating multi-generational financial strain. This highlights the importance of retirees needing to be financially independent, not just for their own peace of mind, but for the well-being of their families. Your children need your independence more than they need your money or an inheritance. They want to enjoy their time with you.
The dual responsibility of the “sandwich generation”, which places significant financial and emotional strain on families, often leads to delayed retirement savings, increased debt, and heightened stress levels. This is where comprehensive financial planning can be very helpful in navigating these challenges and ensuring long-term financial stability for all generations involved.
Rethinking retirement: from destination to a new beginning
Retirement today is not an endpoint – it’s a new chapter. It can be the most liberating and rewarding time of your life, but only if it’s approached with intention.
The retirement journey can be viewed in three phases: an active phase, where retirees pursue travel, hobbies, or family time; a passive phase, where mobility may decline; and a supported phase, where health or care needs increase. These phases each come with their own distinct financial implications, making a comprehensive, adaptable plan essential.
Planning for these stages is not just about having enough savings, but about aligning one’s financial resources with a particular life vision. You’ve worked for 30 to 40 years and spent 60,000 to 80,000 hours crafting your financial life, so retirement is your chance to design how you want to live next. That takes clarity and structure.
Balancing spending and legacy: a structured approach to fulfilment
In a society where saving is sometimes prioritised above all else, many retirees are surprised to be encouraged to spend more. It’s counterintuitive, but in many cases, our role as advisors is to say: you’ve done enough, it’s time to enjoy your money responsibly.
Through detailed cash flow planning, retirees can safely spend during each retirement phase while preserving their long-term financial security. This planning goes hand-in-hand with legacy conversations, with partners, children, and advisors, which are financial as well as personal and emotional in nature.
Legacy doesn’t only begin when life ends. Philanthropy should be viewed as an important aspect of legacy planning. From family support to charitable causes, he encourages structured giving (of time and money) that aligns with personal values, using a holistic approach to ensure long-term impact.
We encourage individuals to think about legacy while they’re still active – through volunteering, mentoring, or structured giving. This is where professional guidance on how to set up a family office or philanthropic activities can enable a new era of responsible giving by the family. Ultimately, it is about living a life of purpose and making a difference, not just leaving money behind.
It’s about relationships, not just returns
Wealth management in retirement is as much about relationships and trust as it is about financial returns.
In retirement, the questions become more nuanced. It’s not just about earning – it’s about sustaining, adapting, and making sure that your decisions support both your life and your loved ones. You need an advisor not just to crunch numbers, but to be a real sounding board – someone with insight and empathy who can challenge your thinking and walk the journey with you, whatever may happen in your life.
Expect the unexpected and start now
You have to live by design, not by default. Expect the unexpected, and put a plan in place that allows you to adapt when life throws curveballs. It is never too late, or too early, to create a retirement that is as fulfilling as it is secure.
* Kennedy is the director and regional head at Citadel.
PERSONAL FINANCE
