If you’re nearing retirement and your savings aren’t where they should be, it’s time to act – fast. Jurgen Eckmann, Wealth Manager at Consult by Momentum, says having a contingency plan is critical.
It can feel like it happened in the blink of an eye: one day, you’re busy building a life and a career; the next, retirement is just around the corner. You picture long, leisurely days in the garden or chasing your grandkids around the yard, proud of a life well lived.
But perhaps, somewhere along the way, you cashed in a pension fund when moving to a new job to pay off some lingering debt. Or maybe setting aside the recommended 15% of your income towards retirement felt too steep at the time – and you kept promising yourself you’d catch up later.
Now, later has arrived. And the reality is setting in: your current savings might not be enough to sustain the retirement you envisioned. So, what do you do?
What’s your Plan B?
“For those in their late 50s or early 60s who are approaching retirement with little to no savings, the first step I recommend begins with a psychological reset, says Eckmann. “It’s important to acknowledge your current reality without shame or panic. This emotional acceptance creates the foundation for meaningful action.”
Eckmann shares tips to help you take control:
· Audit your budget and cut ruthlessly – Review your bank statements line by line. Cancel unnecessary subscriptions, downscale where possible, and redirect every spare rand towards building your financial buffer. Consider downsizing or generating income through renting out a room or garden cottage, or converting part of your home into an Airbnb or student rental.
· Eliminate high-interest debt – Tackle unsecured debts like credit cards and personal loans first. Freeing yourself from interest payments boosts your ability to save and invest.
· Investigate all forms of support – Apply for the SASSA Old Age Grant (currently R2,310/month) and look into senior discounts, municipal rebates, and subsidised services in your area.
· Turn your skills into income – Consider freelance consulting, remote admin work, or community-based services like tutoring, baking, or childcare.
· Delay or reframe retirement – Working a few years longer has a triple benefit: you earn longer, save more, and shorten the period your retirement funds must last. Alternatively, consider approaching retirement as a gradual transition rather than a cliff-edge. Partial retirement with flexible work can ease both financial and emotional shifts.
· Don’t neglect healthcare planning – Prioritise a medical aid suited to seniors and set up a dedicated healthcare reserve fund to protect against unexpected costs.
· Consult a professional – You might believe the cost of a financial adviser to be an expense you can ill afford, but right now is when you need it the most. A qualified financial adviser can help you create a strategy that combines annuities, savings, income-generation and government support tailored to your circumstances.
“Remember, planning for retirement isn’t just about crunching numbers. It’s also about adjusting your expectations without giving up on a life of dignity and comfort. Getting from ‘not enough’ to enough’ usually doesn’t happen through big windfalls – it’s about making a series of small, smart decisions that add up over time.”
Avoid the scramble
If you’re in your 30s or 40s and haven’t saved enough for retirement, there’s still time to turn things around – but the sooner you act, the better, says Eckmann.
“Start by eliminating high-interest debt and freeing up cashflow. Channel this into tax-efficient retirement products like a retirement annuity, and take full advantage of any employer contributions, he advises. “Most importantly, commit to a plan and stick to it. With discipline and a long-term view, you can still build a comfortable retirement.
“The best time to start is yesterday; the second best time is now,” he reminds.
Bronze doesn’t have to mean broken
While the idea of a “golden” retirement might feel out of reach, it doesn’t mean your later years can’t still shine. The first and most powerful step is to acknowledge your reality and take back control, says Eckmann.
“Your retirement doesn’t need to follow the traditional script to be meaningful, secure and dignified. With creativity, support and sound advice, even bronze years can bring golden moments.”
