10 smart moves to make before you retire

Good financial planning isn’t only about saving; it’s about creating stability, reducing risk, and building long-term security.

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Here are the most important areas to focus on.

1. Pay down debt strategically

High-interest debt limits your financial freedom and makes it harder to save for the future. The appropriate strategy depends on your individual financial circumstances

Consider:

• Prioritising debts with the highest interest (credit cards, personal loans).
• Consolidating debt if it reduces interest and simplifies repayments.
• Avoiding taking on new short-term debt unless absolutely necessary.

Why it matters: Every rand saved on interest is a rand you can invest in your future.

2. Update or create your will

A will ensures that your estate is passed according to your wishes and avoids legal complications. Make sure your will:

• Reflects your current life situation (children, marriage, divorce, assets).
• Clearly outlines guardianship wishes.
• Lists all major assets and ensures beneficiaries are up to date.
• Is stored safely and accessible to a trusted person.

Why it matters: Without a will, your estate will be distributed in terms of the Intestate Succession Act

3. Pay off your bond

Your home is often your largest asset, but also your largest liability.

Consider:

• Paying extra into your bond to reduce your bond term.
• Refinancing A competitive mortgage rate if it helps reduce your monthly costs.
• Having a mortgage that is manageable even during tough times.

Why it matters: Being bond-free is one of the biggest steps toward financial independence. In some financial planning contexts, paying off a bond early may not be optimal. and this should be evaluated alongside investment opportunities and liquidity needs.

4. Build an emergency fund

A commonly recommended benchmark is to save 3–6 months of essential expenses.

This protects you from:

• Job loss
• Medical emergencies
• Unexpected home or car repairs

Why it matters: It stops you from falling into expensive debt when life happens.

5. Review your insurance cover

Make sure you have the right protection, including:

• Life cover
• Disability cover
• Income protection
• Medical aid or gap cover
• Short-term insurance (home, car, valuables)

Why it matters: Insurance shields your finances from major shocks.

A licensed financial adviser can help assess whether your cover remains appropriate.

6. Check your retirement plan

Review:

• How much you have saved
• Whether you’re on track to retire comfortably
• Contribution rates and investment choices
• Whether to increase your retirement contributions annually

Why it matters: Retirement planning is easier when you start early and stay consistent.

7. Set clear financial goals

This includes:

• Short-term goals (holiday, emergency fund, study fees)
• Medium-term goals (car, home upgrades, paying debt)
• Long-term goals (retirement, financial independence)

Why it matters: Clear goals guide your decisions and keep you disciplined.

8. Keep your beneficiaries updated

• Many people forget this step after marriage, divorce, or having children.

Why it matters: Your retirement fund nomination often overrides your will. Under Section 37C of the Pension Funds Act, trustees allocate death benefits equitably among dependents and nominees. The nomination form does not automatically override the will. Deceased estates and Pension benefits are governed by different legislation. so its not that nominations override one's will but it is not considered much with pension fund legislation.

9. Review and improve your budget

Make sure you:

• Track expenses
• Identify leaks
• Automate savings where possible
• Adjust for inflation and lifestyle changes

Why it matters: A good budget is the foundation of smart financial planning.

10. Plan for tax

Consider:

• Maximising tax-efficient savings (retirement contributions, tax-free savings accounts).
• Understanding how tax affects investments
• Planning for tax in retirement

Why it matters: Tax-efficient planning boosts your net returns over time.

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