As I write this, the Springboks and All Blacks are locked in the first meeting of Rugby’s Greatest Rivalry in 30 years, currently ranked world number one and two respectively, with the series still hanging in the balance after last weekend’s Test. Neither side got there by accident. Months and years of planning sit behind every matchday selection. But part of what keeps the Springboks at the top is that the plan keeps evolving: squad rotation to protect longevity, and new tactics built for specific opponents, all while staying true to the Springbok DNA. The coaching staff constantly strategise, review and stay current with the laws of the game to keep the team, and the country’s expectations, on track.
Many of our clients set up their retirement investment strategy years, sometimes decades, ago. It was reviewed carefully at the time, matched to their circumstances, their risk appetite and their goals, and then, quite reasonably, left to do its job.
The trouble is that circumstances change a great deal over ten or twenty years, and a strategy that made perfect sense at 45 is not necessarily the right strategy at 68.
Below are some guidelines to help ensure your retirement strategy stays a winning one.
Practice, practice, practice: start early, embrace compounding
Starting your retirement investments early is one of the most powerful things you can do. South Africa’s investment landscape benefits from the same compounding effect seen everywhere else: the longer your money is invested, the greater its potential to generate returns.
Don’t change what’s working: avoid early withdrawals
Since the 2026/27 tax year opened on 1 March, South Africa has entered the third withdrawal window of the two pot retirement system. Of the claims submitted since that date, 62% are members withdrawing from their savings pot for the third time, a clear sign that early access is becoming a habit rather than a genuine once off emergency measure for many South Africans.
This underscores the importance of approaching retirement planning strategically, not as an afterthought, but as a deliberate, disciplined process.
Take the easy points and build scoreboard pressure: use the tax benefits of retirement annuities and pension or provident funds
RAs and pension or provident funds offer real tax advantages, allowing you to contribute a percentage of your annual income and receive tax benefits on those contributions. These allowable amounts often change in the annual tax budget, so it is worth revisiting each year to make sure you are contributing the maximum you comfortably can. Tax free growth within these structures, compounded over time, can make a meaningful difference to your final outcome.
Use the rules to your advantage: leverage Tax Free Savings Accounts
Take advantage of Tax Free Savings Accounts (TFSAs) to supplement your retirement savings. TFSAs allow you to invest up to a certain annual limit completely free of income tax, dividends tax and capital gains tax, giving you a tax efficient way to build wealth for retirement while retaining full liquidity.
Use your full squad of players: diversify your portfolio
Diversification is a key principle in retirement investing. Spread your investments across different asset classes, such as equities, bonds and property, to help manage risk and optimise returns. South Africa’s investment landscape offers a wide range of avenues for portfolio diversification.
As you get older, you may need to revisit the underlying asset allocation in your portfolio.
Halftime team talks: regularly review your investment strategy
The investment landscape evolves, and your financial goals may change over time. Regularly review your investment strategy to make sure it still aligns with your retirement objectives, and adjust your portfolio as needed, taking market conditions and your risk tolerance into account.
Know when to take risk and when to be defensive: evaluate risk tolerance and time horizon
Understanding your risk tolerance and time horizon is crucial. Assess how comfortable you are with market fluctuations and align your investment strategy accordingly. A longer time horizon generally allows for a more aggressive approach.
Make good selections and substitutions: review fund and portfolio options
Review your portfolio and fund performance with your advisor, and check that it is meeting your expectations and mandated goals. Discuss fund options and asset manager mandates with your advisor.
Analyse the opposition and the conditions: review fee structures and tax rules
You should periodically review your fee structures to ensure they remain competitive with the market, and check on any regulatory changes that may affect tax or access to your portfolio. This includes the administration platform fees as well as the fund and advisor fees.
Don’t carry any injuries: adjust your needs and expenses in your planning
Needs change over time, whether you are still paying for university fees or have just finished doing so. Review your expenses and life assurance cover. Do you still need all that life cover, or do you need more? Update your estate planning and financial needs analysis for death, disability and retirement. This ensures any surplus funds can be redirected to your retirement savings.
Have a good coaching team: consult a financial advisor
Seeking advice from a qualified financial advisor is invaluable in navigating the complexities of retirement investing. An advisor can help tailor a strategy that aligns with your unique financial situation, your goals, and the South African regulatory environment.
Conclusion
A retirement investment strategy is not a decision you make once and then leave untouched for thirty years. It is a living plan that should be revisited as your circumstances, and the risks you face, change around you. By starting early, leveraging tax advantaged accounts, diversifying your portfolio, staying informed about local regulations, and committing to regular reviews, you can build a robust retirement plan. Remember, your retirement plan is a journey, and thoughtful, informed decisions today pave the way for a financially secure tomorrow. If you cannot remember the last time your retirement strategy was properly reviewed, that alone is worth a conversation with your advisor.
