How to live your best life until you’re 90
Dharen Francis, Business Development Manager at Glacier by Sanlam
Living your best life long after you stop working is possible, but it requires careful planning.
With people living longer than ever before, reaching your 90th birthday is increasingly realistic.
The question is whether your retirement savings will last as long as you do.
Dharen Francis, Business Development Manager at Glacier by Sanlam, shares six practical tips to help you build a fulfilling life that extends well beyond your working years.
1. Think about your future self
Whether you’re starting your first job or advancing in your career, retirement may seem far away.
In your 20s and 30s, priorities often include buying a car, travelling, enjoying social experiences and building your lifestyle.
However, retirement planning should form part of your financial plan from the beginning.
Starting early gives your investments more time to grow and helps create a stronger foundation for the future.
2. Make sure you’re saving enough
Many people contribute to a workplace pension fund but may not be saving enough to achieve their retirement goals.
As a guideline, contributing less than 10% of your income towards retirement is generally too low.
If your after-tax salary is R15 000 a month, aim to save at least R1 500 monthly.
Regularly increasing your contribution rate can significantly improve your retirement outcome over time.
For those without access to an employer-sponsored retirement fund, saving is even more important.
While it may be tempting to spend that money on short-term wants, it’s worth asking yourself: why should the experiences you enjoy today stop when you retire?
Start or boost your retirement savings with what a Friday night takeaway or another pair of nude heels would cost. The future, retired you, living in luxury, will be so glad you did.
3. Follow the “Save. Boost. Preserve.” principle
A simple retirement strategy is to Save. Boost. Preserve.
- Save consistently and start as early as possible.
- Consider contributing to both a workplace retirement fund and a retirement annuity (RA).
- Boost your savings whenever you receive a bonus, salary increase or financial windfall.
- Preserve your savings by transferring retirement fund savings into a preservation fund when changing jobs, rather than cashing them out.
A retirement annuity offers several benefits:
- It helps kickstart your retirement savings strategy.
- Contributions can be adjusted if your financial circumstances change.
- Contributions may qualify for tax benefits.
- Growth within the investment is generally not taxed for interest or capital gains.
- It provides access to a wide range of investment options suited to different risk profiles.
- Most importantly, it helps protect your retirement savings from impulsive spending.
4. Don’t be too conservative when you’re young
Younger investors have one major advantage: time.
Because retirement may still be decades away, people in their 20s and 30s can generally afford to take on more investment risk.
While markets may experience short-term volatility, a longer investment horizon gives you more opportunity to recover from downturns and benefit from potential long-term growth.
5. Know what you’re working towards
Retirement goals become easier to achieve when they are specific.
Understanding how much income you’ll need in retirement and what lifestyle you want to maintain can help motivate you to save consistently.
If living costs feel high today, they are likely to be even higher in the future. Planning ahead gives you a clearer picture of what is required to fund the retirement lifestyle you want.
6. Don’t go it alone
A qualified financial adviser can help you develop a holistic financial plan based on your circumstances, goals and investment objectives.
Professional guidance can help you determine how much to save, select appropriate investment strategies and stay on track as your needs evolve over time.
Start today
The secret to enjoying life into your 70s, 80s and 90s isn’t simply living longer—it’s having the financial freedom to continue doing the things you love.
By starting early, saving consistently, preserving your investments and seeking professional advice, you can build a retirement that supports the lifestyle you’ve worked hard to create.
Glacier Financial Solutions (Pty) Ltd (Glacier), a licensed financial services provider (FSP 770) authorised to act as an administrative FSP.
Sanlam Life Insurance Ltd is a licensed life insurer, financial services provider (FSP 2759) and registered credit provider (NCRCP43).
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