Different approaches to retirement: Which path will you take?

Richard Branson once said “business opportunities are like buses; there’s always another one coming. The same goes for opportunities to create the life you want, even in retirement.” Retirement isn’t a “one-size-fits-all” milestone anymore.

For many South Africans, the dream of leaving work behind at 60 or 65 feels out of reach while others are redefining what retirement even means. Some are choosing to slow down gradually, some are saving aggressively to quit early, and others plan to keep working as long as they can.

The big question is: Which retirement approach fits your life and your goals?

1. Traditional retirement (when you stop working at around 60-65)

This is the path most of us grew up expecting: work full-time until your 60s, then live off your pension, retirement fund, and savings. But reality paints a tough picture. The 2024 10X Retirement Reality Report found that only 6% of South Africans feel confident they’re on track to retire comfortably, while over 60% have no retirement plan or savings at all.

If traditional retirement is your goal, the key is to start early and save at least 15% of your salary every month, keep your investment fees low, and avoid dipping into your retirement savings when changing jobs.

2. Semi-retirement (phased retirement)

Not ready (or financially able) to stop working completely? A growing number of South Africans are choosing semi-retirement: cutting back to part-time work, consulting, freelancing, or turning a passion into a small business.

Why it works:

Financial security: Earning part-time work helps your savings last longer.

Lifestyle balance: Staying engaged socially and mentally can keep you healthier and happier.

Globally, the OECD more retirees are choosing part-time work out of both financial need and personal fulfillment, and the trend is rising in South Africa too.

3. The “never retire” approach

Some people plan to work indefinitely, either because they love what they do or can’t afford to stop. Longer lifespans and healthier aging make this more possible than before.

The risk? Life can throw curveballs such as health issues or job market changes could cut careers short. Even if you plan to work forever, a solid retirement plan is non-negotiable as a safety net.

4. Lifestyle-driven retirement (downsize and simplify)

Another approach is to reduce your expenses instead of trying to match your working income in retirement. Downsizing to a smaller home, relocating to a more affordable area, or simplifying your lifestyle can make your savings go further.

Did you know? Stats SA reports that South Africans over 60 spend nearly 30% of household income on housing and utilities. Downsizing can free up resources for travel, hobbies, or simply peace of mind.

Which retirement style suits you?

How would you know how to make the right choice?

Ask yourself:

• How much do I really need to live the life I want?
• Am I willing to work part-time or freelance later in life?
• Could downsizing or relocating make retirement easier?
• How much have I saved and how much more do I need?

Whether you’re dreaming of retiring early, phasing out gradually, or never fully stopping work, the most important thing is to have a plan.

At 10X Investments, we can help you:

• Calculate the retirement gap (the difference between what you’ll need and what you’ve saved).
• Optimise your investments with low fees and smart strategies.
• Build a retirement plan that fits your life, not just a “one-size-fits-all” model.

Start today. The sooner you plan, the more options you’ll have when it’s time to decide which retirement path is yours.