Retirement reality check for South Africans

Many South Africans delay or neglect saving for retirement because they plan to build wealth elsewhere – often through starting a business, investing in property, or even relying on the idea of leaving behind a “legacy” for their children.

The younger generation has added a new angle: building wealth by becoming influencers, content creators, or social media personalities. While these paths can generate quick income and, in some cases, impressive success, the reality is that they are just as uncertain and high-risk as running a business.

Your dream career is not your retirement plan

Entrepreneurs often assume their business will one day fund their retirement. But what if it doesn’t? Markets change, algorithms shift, and audiences move on. Independent investments are the safety nets that ensure your future isn’t tied to one uncertain outcome.

Diversification is key

Placing all your wealth into one area – whether that’s a single business, property, or a digital career – is risky. A balanced portfolio spreads risk across multiple vehicles: local and offshore equities, bonds, property, and cash.

Time is your biggest asset

Whether through compulsory or discretionary investments, compounding works best when you start early.

Is legacy enough?

Many South Africans find comfort in the idea of leaving a business, property, or inheritance as a legacy for their children.

• Wealth often dissipates quickly– By the third generation, most family wealth has disappeared due to poor planning, tax, or family disputes.
• A true legacy requires structure– Trusts, estate planning, offshore structures, and diversified portfolios help ensure wealth is preserved. Assets that outlive careers are the real legacy.

Lifestyle realities in retirement

Statistics show that most South Africans cannot maintain their lifestyle in retirement. Hoping that your business will sell, your followers will stay loyal, or your children will support you is not a plan. A well-structured investment strategy provides peace of mind, allowing you to enjoy your passions now while knowing your future is secure.

Balance is possible

The good news is that you don’t have to choose between chasing your dreams and investing for the future. With proper planning, it’s possible to do both:

• Split your income: Commit a fixed percentage of your business profits, property income, or influencer earnings to long-term investments. Let these grow quietly in the background.
• Align time horizons: Your career or business may be your medium-term growth engine, while retirement products, exchange-traded funds, and offshore investments secure your long-term future.
• Think liquidity: Businesses, property, and even influencer income streams can dry up or become illiquid. Pair them with investments that offer flexibility, such as unit trusts or money market funds.
• Peace of mind: Knowing that part of your money is working steadily in diverse investments gives you the freedom to take risks in business, property, or social media without gambling away your entire future.

There is absolutely nothing wrong with being an influencer, starting a business, or investing in property. These are all valid ways to build wealth and follow your passions.

The key is to recognise that every opportunity comes with uncertainty. By putting a balanced, diversified investment plan in place, you give yourself the flexibility to pursue your dreams while also being prepared for the unexpected.