Is your retirement on track? Check your progress by life stage
By Leslie Greyling*
Thinking about retirement when it’s near can give you sleepless nights. You worry about medical bills, home repairs or unplanned costs. That fear can stop you in your tracks.
And when retirement is still decades away? It’s easy to ignore it. You’ve got work, children and daily bills to juggle. Saving for a distant future quickly drops down your list of priorities.
I often hear how hard it is to make retirement saving feel urgent today. That’s why I break the journey down by life stage. Focusing on practical goals gives you clear landmarks to check whether you’re on track.
Use these checklists to guide your progress, boost your confidence or point out areas where you maybe need to catch up. I hope you find both motivation and reassurance as you look at the section for your age group.
Younger readers will also get a taste of what lies ahead. Knowing the expenses you might face in 30 or 40 years helps you set smarter goals today.
Baby boomers (60–79 years)
You’ve built your wealth over decades, but a weakening rand and economic uncertainty can keep you up at night. Your goal now is to protect what you’ve earned and secure a reliable income stream.
Offshore exposure: hold at least 30% of your portfolio in offshore assets or structures to hedge against rand weakness and local market swings.
Income stability: ensure at least 50% of your retirement income comes from predictable sources such as annuities or foreign dividends.
Estate planning: review your will, trusts and beneficiary nominations every two to three years. clarity here avoids costly surprises.
Medical cover: top up your medical aid with gap cover or international options so rising healthcare costs don’t derail your budget.
Capital preservation: maintain a conservative mix – about 60% in income-generating assets, 20% in cash or equivalents, and 20% in growth assets.
Generation X (45–59 years)
You’re balancing support for children, ageing parents and your own career goals. In a volatile economy, flexibility matters as much as growth.
Offshore structures: consider an offshore bond or foreign-domiciled retirement annuity to diversify currency risk. aim for 20–30% offshore.
Emergency fund: keep two months’ living expenses in a local money-market fund you can access quickly if rand volatility spikes.
Property versus global equity: own your home but avoid overconcentration. invest around 20% of your portfolio in global ETFs or stocks.
Education planning: lock in tertiary fees with education policies or savings plans that hedge against currency swings.
Risk review: revisit your risk profile annually. political shifts or market dips may mean you need to adjust your mix more often.
Millennials (29–44 years)
You’ve grown up during times of change and you expect your money to work hard for you. You seek growth but also safety nets.
Tax-free savings account (TFSA): max out your annual TFSA allowance with a blend of local and offshore ETFs for tax-free growth and rand protection.
Home versus offshore: if you’re saving a deposit, split contributions – 80% to your home and 20% to an offshore ETF.
Retirement contributions: aim to save 15% of your gross income, with at least 25% of that going offshore. automating via payroll keeps you consistent.
Gap cover and top-ups: healthcare costs keep rising. top up your medical aid with gap or short-term cover that includes emergency evacuation.
Digital platforms: use reputable online brokers that offer access to global markets, low fees and multi-currency wallets.
Generation z (13–28 years)
You’re starting your financial journey in a world of rand swings and economic headlines. Time and tech are your allies.
Start early: open a TFSA and invest at least 5% of any earnings into a global ETF. even small amounts grow significantly over time.
Multi-currency wallet: experiment with a digital multi-currency account. get comfortable holding a bit of foreign currency for emergencies.
Financial education: follow local advisers and platforms that explain rand risk, offshore structures and basic investing. spend an hour a week learning.
Emergency buffer: stash R1 000 now, then build up to one month’s expenses. that cushion stops you reaching for high-cost credit.
Mindful spending: use apps to track your rand spending. seeing how fluctuations affect your budget builds awareness and discipline.
Taking the next step
Choose one benchmark that feels most pressing. set a deadline and mark it in your calendar. review your progress monthly. Small, consistent steps will help you tame uncertainty and turn retirement from a distant worry into a clear plan.
If you’d like advice tailored to your life, let’s talk – I explain everything in plain language and support you every step of the way.
*Leslie Greyling is a financial advisor at Brenthurst Fourways. leslie@brenthurstwealth.co.za
