Securing your financial future in retirement and beyond
16 Apr, 2024

Bertie Nel, Head of Financial Planning and Advice at Momentum



The cost-of-living crisis has forced most of us to focus on the here and now, but Bertie Nel, Momentum Head of Financial Planning and Advice, warns that the future is just as important. The more planning you do, the less daunting retirement will seem both for you and your loved ones.


“The current economic climate confirms that we need to be prepared for the future, even though it feels like surviving today is all we can master. It’s now more important than ever for South Africans to consider securing a comfortable retirement and leaving a rich legacy,” says  Nel.


When considering your financial future, he says it is crucial to not only plan for your golden years but also to create a lasting impact for your loved ones and future generations.


Nel provides a few key considerations to mull over before setting your financial plan in stone:


Saving for retirement: How much do you need?


Planning for retirement starts with understanding how much you need to save. Nel says a good place to start is to consider factors such as your desired lifestyle, inflation, healthcare costs, and life expectancy. While the exact amount varies for everyone, financial experts recommend saving at least 70-80% of your pre-retirement income to maintain your standard of living in retirement.


“Another good rule of thumb is to multiply your current salary by 200. So, if your salary is R30,000 per month, ideally you want to have R6-million saved before you retire,” advises Nel.


What to consider when retirement looms


What if retirement is fast approaching and you’re overwhelmed by everything you need to take into account? Nel provides five key considerations to review and consider when planning to live out the rest of your days’ work-free and stress-free:


  • Assess your financial situation: Take stock of your assets, debt, and investments. Determine if you’re on track to meet your retirement goals.


  • Review your retirement accounts: Evaluate your pension, provident fund, and/or retirement savings and align them with your goals.


  • Consider healthcare costs: Factor in medical expenses (you will likely incur most of your healthcare expenses after the age of 60) and explore options for healthcare cover, such as medical aid or insurance, to protect your savings.


Create an estate plan: Establish a Will, living will, and Power of Attorney to outline your last wishes regarding your assets, treatment during ill health, and who you want to take charge of managing these important financial decisions should you no longer be able to. “This is by no means an extensive list as everyone leads different lives with a unique set of expenses and circumstances,” says Nel. “Do what’s best for you as you have the best perspective on your own needs.”


Choosing a retirement product that’s right for you


There are many different retirement products and choosing one over the other depends on what you want to achieve. An important consideration is whether you want to leave a legacy, or not. Do you want your assets to continue to grow and provide for your loved ones after your passing? Make sure your financial adviser knows your preference as it is an important factor that will influence the type of retirement product you choose.


The importance of having a Will


Speaking of passing away, we all know that it is inevitable. Nel says a Will is a vital document that dictates how your assets will be distributed upon your death.


“Without a will, your estate could be subject to lengthy legal proceedings and may not align with your wishes. Additionally, having a living will outlines your preferences for medical treatment in the event of incapacitation, providing clarity and guidance to your loved ones.”


Connecting with a financial adviser


Whether you’re nearing retirement or at the peak of your career, Nel says a financial adviser can offer invaluable guidance to ensure your financial security and legacy. “From crafting a personalised retirement plan to optimising your investments and estate planning, an accredited financial adviser can help you navigate the complexities of retirement and help you leave a lasting legacy.”


At the end of the day, and certainly at the end of your career, building a strong financial legacy requires careful planning, proactive decision-making, and expert guidance.


“By saving diligently, preparing for retirement, and crafting a comprehensive estate plan with the help of the sound advice from a financial adviser, all working South Africans can retire with peace of mind and live out the rest of their days without stressing about financial security,” Nel concludes.







@Bertie Nel
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