By Suzean Haumann *
Will 2026 be the year you retire? Or is it the year you finally take your retirement planning seriously? Either way, now is the ideal moment to take stock.
Too many South Africans go into retirement without a real plan. All too often, they rely more on guesswork, outdated assumptions, or blind hope. But retirement is no longer a single event, it’s a phase that for many of us could last 20, 30 or even 40 years.
How confident are you that your plan will deliver a large enough nest egg to last that long? Rather than guessing, I want to encourage you to start taking a more active interest in your future plans. It’s easy to hope for the best or find a way to cope with the situation in the future.
But it doesn’t have to be that way. And, honestly, it’s not difficult. I promise. Here are my tips that I hope will give you the tools and confidence to make a plan, and stick to it.
Start with a budget – and be honest about your lifestyle
One of the biggest mistakes I’ve seen from recent retirees is spending too much too soon. Sticking to a budget in retirement isn’t a leash around your spending, its liberating. Because it gives you the confidence and peace of mind that your money will last.
Start by estimating your monthly income needs. The general rule is that you’ll need about 70% of your pre-retirement income. But that depends on your lifestyle, debt, medical needs and other personal factors.
This table shows you roughly how much capital you’ll need if you want it to last 30 years and you aim to draw 5% of your capital balance per year. Note that these are estimates – not guarantees.
Without a plan, you’ll be flying blind
These figures might be a shock or a wake-up call for many. And that’s a good thing: because if you know what you need to aim for, you can start planning how to get there.
Financial planning isn’t about sticking your head in the sand. It’s about facing up to the reality that you can’t work forever and you have to plan for those years. The good news is you don’t need to do this on your own.
I spend a great deal of my time working with clients to either create their plan, or refine an existing plan to adapt to change.
We focus on:
- Setting realistic retirement goals
- Calculating how much capital you need
- Deciding when to retire
- Planning how long your money must last
- Considering tax, estate planning, and medical cover
This clear framework allows you to move ahead with your life, without constantly worrying about your future. Your plan might not be perfect, and you’ll probably adapt it over time, but it gives you a solid base so you can make better decisions.
What to choose: life annuity vs living annuity
When you retire, by law, you have to invest at least two-thirds of your retirement savings in an annuity. But which type?
Living annuity:
- Offers flexibility: you choose your income drawdown (between 2.5% and 17.5%)
- Any remaining capital goes to your heirs
- Risk: you could outlive your capital if drawdowns are too high or markets underperform
Life (or guaranteed) annuity:
- Pays you a fixed, guaranteed income for life
- No capital is left for beneficiaries
- Ideal if you’re looking for peace of mind and income certainty
Which is better? It depends. If you want flexibility and the potential to leave a legacy, a living annuity may suit you. If you value predictability and don’t want to worry about market performance, a life annuity could be a better fit.
You can also combine both for a balanced strategy – known as a hybrid annuity.
Avoiding common pitfalls
Even with a decent plan, many retirees fall into these traps:
- Withdrawing too much: Drawing 8% may feel tempting, but it has its disadvantages. Take a look at the impact if you draw more than the 5% used in the earlier example in which your capital would last 30 years.
- Avoiding risk completely: Going too conservative might feel safe, but it can leave your money shrinking in real terms. That is why it still makes sense to hold some growth assets like listed stocks in your retirement portfolio to combat inflation.
- Failing to get advice: Retirement isn’t something you should navigate alone. A good financial planner helps you project income, manage tax, and make smarter decisions with your capital.
You only retire once. Make it count.
Think of retirement planning as designing your ideal lifestyle – with a solid financial engine behind it. There’s no one-size-fits-all strategy, but there is a common thread: you need a clear plan, the discipline to stick to it, and solid advice.
If you’re retiring this year, or just want to check if you’re still on track, now is the perfect time to book a review with a Brenthurst advisor.
Don’t leave your future to chance. Take control. Start 2026 with a retirement plan you can trust.
*Suzean Haumann, CFP®, is head of Brenthurst Wealth Tyger Valley
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.
Angelique Anderson joins our Pretoria office as an Administrative Assistant, bringing over 24 years of experience across the financial, legal, and executive support sectors, both locally and internationally. Her meticulous attention to detail, discretion, and extensive knowledge of asset finance and compliance make her an invaluable addition to our team.
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.
