Living by Design

Retirement is a daunting but exciting prospect.

While it may come with mixed feelings, sa pecialist wealth manager, Citadel, believes emotional preparedness coupled with strategic financial planning will ensure that your retirement years are some of your most fulfilling ones yet.

With life expectancy increases, the face of retirement is changing. Retirement is no longer a finish line; it’s the beginning of a multidecade journey that is sometimes challenging but also brings great joy — especially to those who are adequately prepared.

Citadel Director and Regional Head for Cape Town, John Kennedy, explains how retirees can live meaningfully by remaining independent and having the freedom to choose how they want to live, while creating a legacy that truly reflects their values.

PLANNING FOR RETIREMENT PROTECTS YOUR LOVED ONES

Many South African adults support their parents financially while raising their own children. They are what is known as the ‘sandwich generation’. This multigenerational responsibility puts financial and emotional strain on families because adult children are forced to delay their own retirement savings, increase their personal debt, and experience heightened levels of stress as they support ageing parents. This highlights the importance of retirement planning. Kennedy says: ‘Your children need your financial independence more than they need your money. They want you to enjoy your life and to spend time with you.’ This is where a professionally drafted financial plan can be very helpful. It will help navigate life’s challenges and ensure long-term financial stability well into your retirement.

A FRESH APPROACH TO RETIREMENT

Kennedy says we need to reimagine how we look at retirement. He says: ‘It can be the most liberating and rewarding time of your life, but only if it’s approached with intention.’ In taking this approach, Kennedy suggests viewing the retirement journey in three phases:

1. An active phase, where retirees spend their money to enjoy travel, hobbies or family time.
2. A passive phase, where mobility may decline and spending decreases.
3. A supported phase, where health deteriorates or care needs to increase.

Each phase brings its own distinct financial implications, and each must be mapped out through a comprehensive but adaptable plan.

Planning for these stages is not just about making sure that you have adequate savings but also about clearly aligning one’s financial resources with a particular life vision. The thought of no longer earning a steady income can be terrifying, but by planning and adjusting your retirement plan when necessary, you can consciously design your retirement to suit every phase of your later life.

SPENDING VS LEGACY – TAKING A BALANCED APPROACH

Retirement, Kennedy stresses, should be about reaping the rewards of decades of hard work. He says: ‘Many retirees are surprised to be encouraged to spend more. It’s counterintuitive, but our role as advisors is to sometimes say you’ve done enough, it’s time to enjoy your money responsibly,’ Kennedy explains.

Through detailed cash flow planning, retirees can safely spend during each retirement phase while still preserving their long-term financial security, and a good advisor will help them achieve this. Kennedy says: ‘Now is the time to pursue those long-held dreams, so take that trip, buy that car or spoil your family. In retirement, people also consider the legacy they’d like to leave. ‘Legacy doesn’t only begin when life ends,’ notes Kennedy, who suggests that family legacy planning and philanthropy should be viewed as an important aspect of any retirement plan. From family support to charitable causes, Kennedy stresses that structured giving that aligns with personal values will have the most impact.

THE ‘HUMAN ELEMENT’

Ultimately, your partner in planning your retirement should not only focus on financial returns. Kennedy says: ‘In retirement, the discussion and questions become more nuanced — it’s about sustaining, adapting, and making sure that your decisions support both your life and your loved ones.’

He adds: ‘Your advisor should not just crunch numbers, but should also be a real sounding board — someone with insight and empathy who can challenge your thinking and walk the journey with you. Someone you trust.’ Ultimately, in retirement, Kennedy says, ‘you have to live by design, not by default. It is never too late, or too early, to create a retirement that is as fulfilling as it is secure.’