A call to retire the concept of ‘Retirement’, is becoming louder and louder – with good reason. Many of us are thinking differently about those things that characterise retirement: Why should I stop working if I like what I do? Why should I slow down when I still have so much to offer? Thanks to modern medicine, we’re generally healthier than the generation before us, making it possible to contribute meaningfully to society for longer.

Let’s just consider the Japanese for a moment. They don’t even have a word for ‘leaving the workforce for good’ in English, while American psychiatrist and psychoanalyst, Prudy Gourguechon, prefers to refer to retirement as “starting older.” (I find this a liberating thought and a refreshing change of perspective.)

A recent study by the University of Cape Town’s Liberty Institute of Strategic Marketing titled The Forerunners Report found that South Africa’s 55+ cohort is staying economically active for longer by design, by choice or by circumstance. We aren’t sitting at home twiddling our thumbs – we are active participants and contributors to our society.

It’s a fact: We’re living longer

According to the WHO, life expectancy in South Africa has increased by 10 years. The industry generally considers that, on average, a 65-year-old male should live to 82, while a 65-year-old female should live to 87. So whether you want to hit the porch the day you retire, or invest time in a passion project, two things remain true: We’re living longer, and therefore we need to sustain ourselves for longer. Financial longevity should therefore be a key consideration when we’re nearing our ‘starting older’ date.

‘Retirement age’ is a dynamic concept, and as with all things money, deciding on a retirement age should be informed by your unique circumstances: Does the math add up to ensure a stress-free retirement for 30 odd years? Do you still have dependents? Can you be retired and still work? Navigating this ambiguity requires flexibility in thought, presenting the perfect opportunity to change your mind regarding your retirement age (if there even is such a thing!)

Flexibility in retirement products

There is some flexibility built into retirement savings vehicles that allows you to retire on your terms. For example, when your retirement annuity (RA) matures, but you’re not ready to retire at 55, you don’t immediately have to reinvest in a guaranteed or living annuity. You can make it paid up (i.e. not contribute to your fund anymore) or continue contributing.

There’s also no age limit to start investing in a new RA. As long as you’re earning an income, you can continue investing and reap the associated tax benefits.

Part 1: Setting yourself up for longevity

When you are ready to reinvest your retirement savings, many advisors recommend their clients purchase both a guaranteed and living annuity. A guaranteed annuity ensures income for life and can be the ideal solution to cover essential expenses like housing and medical aid.

A living annuity offers an opportunity for further growth and returns. So even if you’re spending your days snoozing on the porch, you remain an active investor – growing your hard-earned cash in the market.

Part 2: Setting yourself up for longevity

A side hustle that can make some extra cash. A hobby that gives purpose. A regular check-in with a financial advisor. A healthy habit that reduces the risk of a lifestyle disease (and additional medical expenses). This is just the tip of the iceberg of actions you can take – whether you’re 20 or 60 – to enable your future self to show up in the best way possible.

Saving for retirement is the biggest investment most of us will ever make. Sadly, it can also be very complicated. In this monthly blog, Carina Jooste responds to common retirement questions, ranging from which products are best suited to different circumstances to efficient tax treatments.