Your 8-point retirement checklist: Are you really on track?

Retirement isn’t a single moment in time; it’s a long-term financial journey that requires planning, regular check-ins, and making informed decisions. But so many South Africans only start thinking seriously about retirement when it’s uncomfortably close.

We believe that retirement planning should be:

• Simple
• Transparent
• Empowering

This practical checklist will help you assess whether you’re truly on track and most importantly, where you may need to do some course correction.

1. Your retirement date is 6 months away – are you going to stick to it?

Six months out, your retirement date should be locked in. This allows you to finalise income planning, investment positioning, and any employment-related administration.

What to do now?

• Confirm your official retirement date with your employer
• Understand your fund exit process and timelines
• Clarify when your first retirement income payment will be needed

Timing matters more than most retirees realise.

2. Get absolute clarity on how much you have saved

This is the moment for precision and truth, not estimates.

You should know:

• The current value of all retirement funds
• Any preservation funds or retirement annuities you hold
• Whether there are guarantees, penalties, or restrictions

If your numbers are unclear, your retirement plan is unclear.

3. Stress-test your expected retirement income

Many retirees underestimate how long their money needs to last. A retirement of 20–30 years is not uncommon.

Ask yourself:

• What monthly income do I realistically need?
• How does inflation affect that income over time?
• What happens if markets underperform early on?

Your income strategy must be sustainable, not optimistic.

4. Decide how your money will work

Retirement is not the end of investing; it’s a shift in focus.

Questions to ponder over:

• How much should remain invested for growth to beat inflation
• How much volatility can you tolerate
• How to balance stability with long-term sustainability

Being too conservative too early can be just as risky as being too aggressive.

5. Understand your annuity options clearly

This is one of the most important retirement decisions you’ll make.

Make sure you fully understand:

• Living annuities vs guaranteed annuities
• Income flexibility versus certainty
• The long-term impact of drawdown rates

Once implemented, some choices are difficult – or impossible – to reverse.

6. Have you thought of medical costs and other healthcare costs?

Healthcare costs tend to increase in retirement, not decrease.

Then it’s time to review:

• Your medical aid option and affordability
• Expected increases over time
• Provision for out-of-pocket medical expenses

Underestimating your healthcare costs can derail an otherwise solid plan.

7. Plan for tax efficiency at retirement

Contrary to what you may think, tax doesn’t disappear when you retire, but smart planning can reduce its impact.

Ensure you understand:

• Your tax-free lump sum allowances
• How retirement income is taxed
• The tax implications of drawdown decisions

Poor tax decisions can permanently reduce your retirement income.

8. Prepare emotionally for the transition

Retirement is not only a financial shift; it’s a personal one.

Consider:

• How you will structure your days
• Your sense of purpose and routine
• How spending patterns may change

A successful retirement plan supports both your finances and your wellbeing. So, with six months to go, it’s time to make meaningful improvements but only if you act deliberately. A clear, well-structured plan allows you to retire knowing that you will have sustainable income and that your investments are aligned to your new reality. It also helps you ensure that your money is working as hard as it did before retirement.

If you require help with making the best retirement decision for your needs, we can provide you with the right information for a successful retirement.