Retirement Dreams vs. Reality – Can You Afford the Life You Want?

The following article is by Kim Potgieter, Certified Financial Planner, author and coach; who gives us some valuable insight into money management strategies that can help South Africans to thrive in the financial world:

Most South Africans won’t be able to retire comfortably. According to the 10X Investments Retirement Reality Report 2023, only 6% are on track, and most people haven’t formally planned for retirement at all. The reality is that many are unsure about sustaining their lifestyle in the long term, and for a large proportion, stopping work simply isn’t an option.

The gap between dreams and reality

According to the 2023 10X Investments Retirement Reality Report, 71% of South Africans believe they’ll need to continue working after the retirement age of 65. A newer insight from the 2025 FNB Retirement Insights Survey found that nearly 90% of under-60s expect to continue working in some capacity. The real question is no longer when you’ll retire — but how. Do you downsize? Adjust your dreams? Keep working longer than planned? Whether you’re 35 or 65, the sooner you understand what retirement might really look like for you, the more empowered you’ll be to make informed choices and take practical steps toward a future that feels financially secure and purposeful.

Redesigning retirement your way

Retirement today is about showing up differently. We want to stay engaged, purposeful, and connected. That doesn’t mean retiring from something. It means retiring to something — a second career, a passion project, part-time consulting, mentorship, or even starting a business. More and more, people are asking: How can I earn in ways that feel meaningful? Where can I still add value? What does success look like when I’m no longer chasing it, but choosing it? It’s no longer just about having enough saved. It’s about living intentionally and aligning your time, energy, and resources with what matters most to you now.

The reality check — are you on track?

One of the most common and emotionally charged questions I get is: How much do I need to retire? There’s no one-size-fits-all answer. Your “enough” depends on the kind of life you want to live. Some guidelines suggest saving around 20 times your annual income to sustain a comfortable retirement. But most South Africans are nowhere near that figure, and many haven’t planned at all. Start by visualizing what retirement could look like for you. Once you have a clear picture of the life you want to live, you can begin to work out the numbers to support it. What will a typical day in retirement look like? What expenses may be non-negotiable, and which could change or reduce? Are there large expenses on the horizon, like renovations, relocating, or supporting dependants? Will you continue to earn, or rely solely on investments? What lifestyle costs bring you joy, and which could you release? It’s not about having the most money. It’s about having enough to fund the life that feels right for you.

If the numbers don’t add up, what then?

Facing your numbers may feel daunting, but it’s far better than living with the anxiety of the unknown. With clarity comes the power to make informed choices. If you’re not where you want to be financially, ask: What can I do now to create the future I want with what I have today? There are meaningful ways to bridge the gap. You could redefine retirement entirely – it’s not a full stop; it’s a comma. You may choose to work part-time, consult, teach, or turn a passion into a source of income. Many people thrive in their 60s, 70s, and even 80s by embracing a second career or purpose-driven work. You might adjust your lifestyle by downsizing, relocating, or reducing discretionary spending. This isn’t about giving up joy; it’s about living more intentionally. Consider whether you have underutilized assets like property, vehicles, or skills that could be turned into income or sold to boost liquidity. Could you rent out a part of your home or reframe a hobby into a small business? If possible, delay drawing from retirement funds to give your investments more time to grow and reduce the risk of running out. And don’t hesitate to ask for help; a certified financial planner can help you map a realistic plan based on your life, values, and what you need to feel secure.

Downsizing can mean more, not less. 

Many people see downsizing as a loss: a smaller home, fewer luxuries, letting go of the familiar. But reframed with intention, downsizing can be one of your most liberating decisions. Letting go of what no longer serves you creates space for what truly matters. It can reduce stress, free up time, and give you financial breathing room for the things that now feel more important. Instead of focusing on what you’re giving up, consider what you might be gaining: more peace, more freedom, more clarity. A lifestyle that feels simpler, lighter, and more aligned with what you value now.

Earning with purpose

Today, more people are working into their 60s, 70s, and beyond, not just out of necessity but because they want to stay connected, contribute meaningfully, and keep learning. Earning doesn’t have to feel like a burden. It can be something you choose, a purposeful way to bring in income. So instead of asking, “Will I have to work in retirement?” try asking: How would I love to earn? Where do I still want to contribute? What lights me up, and how can that sustain me? How can I harness my wisdom to leave a legacy?

It’s not just about the numbers

Retirement isn’t just a financial shift; it’s an emotional one too. It’s about identity, purpose, relationships, and finding your rhythm in a life no longer defined by a job title or monthly salary. Whether you choose to simplify your life or continue living large, the most important thing is that you make that decision intentionally. Retirement is not something that happens to you; it’s something you can actively shape. It’s the beginning of a life designed on your terms, with your money enabling the life you dream of living.

Kim Potgieter is a Certified Financial Planner, author, and coach. For more information, visit the Chartered Wealth website.