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By Suzean Haumann*
The reality for many South Africans approaching retirement is that they’re filled more with dread than excited anticipation as they approach this stage of their life. Fear of the unknown, particularly their financial future, is often the source of this unease in what is supposed to be one of the most exciting chapters of your life.
As you can imagine, spending the rest of your life counting your pennies and forever fearful your savings won’t sustain you is no way to live.
If you’ve diligently saved or contributed to a pension fund then you should reasonably expect to have enough savings to see you through. You can improve the odds, though, by avoiding the following common mistakes that I see all too often.
1. Retiring too early
We have this outdated notion in South Africa that it’s feasible to retire at 55. This is just not possible for the vast majority of us for a few simple reasons.
The first is that the average life expectancy is now closer to 100 than the 85 years that had so long been the accepted norm. That means your retirement savings have to sustain you for far longer than initially anticipated.
Consider this: if you retire at 55, that means you’ve probably worked for around 30 years and maybe only saved for 20 to 25 of those years. If you live to 100, your retirement savings then have to see you through for another 45 years.
As you can see, the sums just don’t add up for the most of us if you insist on retiring at 55.
Arguing that you won’t live that long, in my opinion, is foolish. You have to plan for the long run.
2. Going overweight conservative investments
I totally understand the desire by many people at retirement who want to put a significant portion of their savings into cash or money market accounts. These make sense as a short-term destination for your savings, but cannot be considered a viable safe haven from equity market volatility.
The reason is simply that they don’t offer above-inflation returns, so in real terms you’re actually getting poorer by the day.
The reality is that you need to take on some risk in the form of equities if you expect your portfolio to see you through retirement.
An income fund still has a place in a portfolio, but over the long term you need higher-risk assets if you hope to outperform inflation and your drawings. Otherwise you run the risk of outliving your money.
3. Excess cash drawings at retirement
I’m all for taking cash from your savings at retirement to take care of debts like a home or car loan so that your monthly costs are reduced.
However, I see too many people take a chunk of their savings for an overseas holiday or some other extravagance they actually can’t afford.
Celebrating your retirement with a trip around the world is a very romantic notion, but not when it costs you a couple of months’ valuable income.
If you are considering something like this, I’d strongly advise you to rethink the logic behind the decision.
4. Not adjusting your lifestyle
The biggest mistake I see people making at retirement is to not scale back their lifestyle to match their income. To be fair, I do think this is by far the most difficult adjustment to make.
However, far too many people continue to live the lifestyle they’d been accustomed to before they retired, and they simply can’t afford it.
So, indulging luxuries like eating out a number of times a week or jetting off on holiday a few times a year just isn’t sustainable.
Some hard choices are needed, which might feel like the end of the world when you’re 60 but your 80-year old self will thank you one day.
You have to live according to what you’ve got. It’s as simple as that.
Navigating your way to and beyond retirement can seem daunting. It doesn’t have to be if you have the right partner at your side. Take the plunge today to speak to a certified financial planner who is able to guide you to the right path so that your retirement is filled with hope rather than dread.
Read more about retirement planning.
Megan joined the Brenthurst Wealth team in March 2026 as an Administrative and Fiduciary Services Assistant at our Val de Vie Office in the Western Cape. Prior to joining Brenthurst, Megan gained three years of experience in the retail sector, where she developed management and client service skills.
I obtained my National Diploma in Financial Information Systems from the Cape Peninsula University of Technology in 1999 and have worked in the wealth management industry since January 2000. Over the years, I have gained extensive experience in various roles, including Portfolio Manager Assistant, Planner Assistant, and Paraplanner.
Esmarelda Isaacs-Andreas joined the Brenthurst Wealth Stellenbosch office in October 2025, taking on the dual role of Receptionist and Fiduciary Administrator.
I obtained my National Diploma in Financial Information Systems from the Cape Peninsula University of Technology in 1999 and have worked in the wealth management industry since January 2000. Over the years, I have gained extensive experience in various roles, including Portfolio Manager Assistant, Planner Assistant, and Paraplanner.
Ashley joined Brenthurst Wealth in January 2025 as Office Administrative Assistant and Receptionist for the Stellenbosch Office.
René Heystek joined Brenthurst Wealth in November 2023, as receptionist and administrative assistant in the newly established George/Garden Route office.
Michelle Heystek has built a career in the financial services over the last two decades, after obtaining her B.Com degree in Financial Management in 2005. Once she joined Brenthurst in 2006, she continued her academic journey, obtaining her Certificate in Wealth Management from INSETA in 2007, followed by a Postgraduate Diploma in Financial Planning from the University of the Free State. In 2008, she earned the Certified Financial Planner (CFP®) designation.
Anelle joined Brenthurst Wealth as a Receptionist and Administrative Assistant to Brian Butchart in the Cape Town office in December 2023. She has a wealth of knowledge from working as a liaison between Financial Advisers and clients at TMA and Absa Investment Management Services (Aims) since 1998. She obtained her B. com degree from the University of Port Elizabeth in 1997.
ADMITTED ATTORNEY | FINANCIAL PLANNER & HEAD OF BRENTHURST FOURWAYS
Sanet was appointed in April 2020, joining our Cape Town team as an Executive Administration Assistant to Renee Eagar. She has been in the financial services industry since 1990. Her previous experience includes positions at Sanlam, BJM and ABSA. She spent her last 12 years working at Alexander Forbes Private Client Wealth as a Senior Wealth Management Assistant. She has received numerous accolades over the years which include but not limited to, Alexander Forbes Client Service Excellence – Silver award in 2014,2015 and 2017. Sanet has also obtained her Certificate in Wealth Management (NQF 5) in 2012 and achieved “Best Student of the Year” from Moonstone.
Maria Smit is a Certified Financial Planner® with over 10 years of experience in the financial planning industry.
