Only 6% of South Africans can retire independently of others and on the other side almost half of the population depends on family and friend to support them financially. The importance of planning ahead has never been more urgent.  

Simple lifestyle changes can already be made long before retirement is on the horizon. For example cut on unnecessary expenses. You will understand where all your money is going to after tracking your expenses for a few months. Reducing needless costs will leave you with a positive retirement saving.

Becoming more active and eating healthier can save health care cost later in life. Although these costs are inevitable due to the complexities of getting older, making changes such as taking walks, using the stairs, and eating healthier, can eventually improve your overall health. Staying as healthy as possible and remain actively involved, physically and mentally, can save you on eventual health care costs.

Another costly part of retirement can be the cost of care. Many elder in advanced age need living arrangements suited to the requirements of ageing.

Not every South African will be able to move out of their house and into a retirement village. While the idea of an upmarket village is a good option, not everyone is willing to sacrifice their home. Home care agencies have grown a lot in the last few years and innovative companies such as CareChamp have joined the movement of “ageing-in-place”. For one retiree, monthly expenditure in an upmarket retirement village can be approximately R30,000 per month. However this does not yet include Caregiver Services which could add an additional R20 - 30 000 per month to the bill - Whilst with a home care agency 24/7 live-in care (with two caregivers rotating) will cost you  around R22,000 per month. On top of that you can enjoy the personal care in the comfort of your own home.  

If planning ahead might be too late for you, setting up a side hustle or a side business can be an excellent solution for you. Women and men over 60 are in their prime time to start a side business. Use the skill set you already have to earn some extra pocket money. Start teaching others what you have learned through your life experience. Some extra cash can resolve a possible problem for when you see the end of your retirement savings. 

Are you interested in starting your own side business, but don’t know where to start? Take a look on 50 Plus Skills and see what they can offer you.

It’s never too late to start saving and actively managing your money. We recommend using the 22/7 platform as a means to help you save and plan for your retirement.