Many South Africans plan to retire as early in life as possible, but the reality is that most cannot afford to retire as early as they’d like. Perhaps it should be a wake-up call that you are responsible for your own retirement plan and if you’re not on track, perhaps best to act sooner rather than later.
How can you take charge of your retirement plan?
SAVE, SAVE, SAVE….
The first step is to determine whether you are saving enough capital on a yearly basis. So, if you were to retire at your planned retirement date, how long would your capital last if you were to draw your required income? If your capital will not last very long, it is a sign that more money should be saved on a yearly basis. Drawing a financial roadmap is a great way of visually planning your retirement.
Monitor your investment performance:
Markets move in cycles, so investment performances will vary each year and are sometimes not as pleasant as expected. However, if your portfolio is not performing over a longer period such as three to five years, you should be asking why. A good way to measure your performance is against South Africa’s annual inflation target of 6%, and if your portfolio is not beating inflation comfortably over longer periods after costs, then it should be a serious concern for you. Investment advisors should be able to construct suitable portfolios that aim to beat multiple benchmarks on a client-specific level. It is recommended that your portfolio is constructed to best suit your long-term objectives. Investing in money market is no longer the safe place to be in a high inflation environment – your wealth will erode in real terms.
Invest in growth assets:
Over long periods of time, riskier asset classes such as equities have outperformed inflation at a comfortable level. To grow your wealth, you need to have a suitable allocation to equities, both locally and internationally. Growth asset classes do carry more risk and do expose your portfolio to market volatility, and it is best to take a long-term view when measuring performance.
The below graph is an illustration of how a more aggressive portfolio outperforms conservatively structured portfolios as well as beating inflation (CPI) over the long term:
- Conservative portfolio:
- The below portfolio comprises mainly income and balanced funds. Although beating inflation, it is not by a large percentage
- Aggressive portfolio
- The below portfolio comprises mainly balanced funds and equity concentrated funds, with a higher allocation to equities both locally and internationally. The portfolio aims to beat inflation by a much larger percentage over the long term.
Source: Profile data / Brenthurst Investment Committee
Ensure that your portfolio is well-diversified:
Diversification benefits are well noticed when markets suffer a downside swing. This was very evident in March 2020 because of the Covid-19 crisis and the swift negative impact it had on markets. Diversifying a portfolio means not investing all your capital in the same asset class. A well-diversified portfolio will be constructed to include exposure to multiple asset classes as well as over various geographic locations.
The below graph illustrates how a diversified portfolio offers more protection to your wealth in a downside market cycle (seen in March 2020), as well as outperforms the benchmark on the upside:
Source: Profile data / Brenthurst Investment Committee
Taking charge of your retirement is the first step to enhancing your chances of a successful retirement. It is also recommended that your retirement plan is reviewed regularly and adjusted as circumstances and market conditions change. It could be a daunting task for some and navigating through the challenges and investment solutions is best done with the assistance of an investment advisor.
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.
