The 7 Habits of The Most Successful South African Retirees

After nearly two decades of working with South African retirees, one lesson stands out clearly: the difference between a stressful retirement and a successful one has surprisingly little to do with how much money you retire with.

After nearly two decades of working with South African retirees, one lesson stands out clearly: the difference between a stressful retirement and a successful one has surprisingly little to do with how much money you retire with.

It has far more to do with how you think, plan and behave once the pay cheque stops.

We have seen retirees with relatively modest portfolios live calm, fulfilled lives, while others with tens of millions remain anxious and uncertain. The common thread isn’t wealth – it’s habit.

Over time, the most successful retirees consistently display seven very specific habits.

They know their monthly number

Successful retirees are crystal clear on one fundamental question: What does our lifestyle actually cost per month?

Not a rough estimate. Not a hopeful guess. A realistic, tested number.

They understand the difference between:

• Essential spending (medical aid, insurance, municipal costs, groceries, transport)

• Lifestyle spending (travel, entertainment, hobbies, helping family)

• Irregular costs (car replacement, home maintenance, major trips, medical excesses). This clarity removes fear. When retirees know their number, retirement stops feeling vague and starts becoming manageable.

They understand retirement isn’t a straight line

Successful South African retirees don’t assume their spending will remain constant forever. They recognise that retirement unfolds in phases.

We often describe these as:

• Go-Go years: early retirement, typically more active and more expensive

• Slow-Go years: reduced travel and discretionary spending

• No-Go years: lower lifestyle spending but rising healthcare and care-related costs

The most successful retirees give themselves permission to enjoy the early years, while deliberately planning for the higher medical and care costs that tend to arrive later. This balance is critical to long-term sustainability.

They have a clear investment strategy

Retirees who succeed don’t invest randomly. They have a clear structure that supports:

Income today

Stability over the next few years

Growth for the long term

Rather than chasing returns, they focus on funding a lifestyle while protecting capital.

A commonly used framework is a three-bucket approach:

• Short-term bucket for income and liquidity

• Medium-term bucket for stability and replenishment

• Long-term bucket for growth and inflation protection

This structure reduces emotional decision-making and helps retirees avoid selling long-term assets during short-term market stress.

They don’t put all their eggs in one basket

Diversification is not a buzzword for successful retirees – it is a survival strategy.

Once retired, there is little room to recover from a single bad decision. That is why successful retirees avoid relying on:

• One asset class

• One country

• One currency

• One income source

Instead, they spread risk across local and offshore assets, multiple currencies, and different types of income streams. The goal is not maximum return, but resilience and reliability.

They optimise tax every year

Tax planning does not stop at retirement – it becomes more important. Successful retirees understand that:

• Different income sources are taxed differently

• Timing of withdrawals matters

• Capital gains can often be managed proactively

• Tax-free and discretionary investments play a strategic role

• They treat tax planning as an ongoing annual process, not a once-off decision at retirement. Keeping more of what you have earned is just as important as growing it.

They keep their plan simple

The most successful retirees tend to have:

• Fewer investment accounts

• Clear income sources

• A strategy they actually understand

• Complexity increases anxiety and mistakes. A simple, well-structured plan is far easier to stick to over a 20- to 30-year retirement journey.

They review regularly – without panicking

Successful retirees review their plans annually, but they don’t react emotionally to headlines or short-term market movements.

They check:

• Spending versus plan

• Income sustainability

• Asset allocation

• Estate and beneficiary structures

What they don’t do is chase performance or try to “fix” normal volatility. They understand that retirement is a long journey, not a series of emergencies.

The seven habits of successful South African retirees are not complicated or flashy. But applied consistently, they are powerful.

• They know their monthly number.

• They understand retirement changes over time.

• They invest with a clear strategy.

• They diversify risk.

• They optimise tax every year.

• They keep things simple.

• And they review their plans calmly and regularly.

The real question for anyone approaching retirement is simple: Which of these habits do you already have – and which ones still need work?