How to secure your future in retirement

Retirement doesn’t mean your financial planning stops. Fareeya Adam, CEO of Structured Products and Annuities at Momentum Wealth, spoke to Krishna Kanjee, Head: Product Development, about how your choices now shape the future you’ve worked for.

Fareeya Adam: Reaching retirement is a major achievement. It’s the point where years of planning and investing finally pay off. But what many people don’t always realise is that managing your money in retirement is just as important as building it.

Krishna Kanjee: That’s so true. The day you retire doesn’t mean your financial journey stops. It’s the beginning of a new phase, and the decisions you make now will determine how secure and comfortable your retirement will be. The big question is: how do you make sure your money lasts as long as you do? That’s where income certainty comes in.

Fareeya: Exactly. When you stop earning a salary, your retirement savings have to become your monthly income. You need that income to be reliable for the rest of your life, which can easily be 20 or 30 years. This is what makes getting good financial advice so important at this stage – it’s about choosing the most suitable solution, based on your personal needs and risk appetite. One of the most important retirement realities people often overlook is that women typically need their savings to last longer.

Krishna: Based on our experience, a 60-year-old woman lives on average 3.5 years longer than a 60-year-old man. That may not sound dramatic at first, but financially, it matters a great deal. For the same retirement income increasing at 5% a year, a woman would need around 10% more savings than a man. Yet we see the opposite in practice: women retire with about 32% less savings on average.

Fareeya: That gap makes retirement planning especially important for women. What is encouraging to see is that this gap has reduced from about 57% just five years ago. It is not only about saving enough, though. It is about making sure your savings are converted into an income strategy that can support the life you may live for longer.

Krishna: Let’s talk about the two main choices most South Africans have to consider as part of this strategy: choosing between a life annuity and a living annuity. A life annuity offers guaranteed income for life. Essentially, you give your retirement savings to an insurer, and they commit to paying you a monthly income for life. That income could remain the same, increase at a fixed rate, or have inflation-linked increases every year, no matter how long you live or what happens in the markets. The key benefit is simple: you cannot outlive this income.

Fareeya: A living annuity offers something different. It keeps your money invested and gives you flexibility over how much income you draw each year, within the legal limits.

That flexibility can be very valuable, especially if your needs change over time, allowing you to respond to changing needs and market conditions. But greater flexibility comes with more responsibility. Drawing too much, or taking the wrong investment approach, can place long-term income sustainability at risk – your money might run out. That being said, a living annuity can work well for those who can manage that responsibility with the help of a financial adviser.

Krishna: That is why the decision is rarely about choosing one product because it is simply ‘better’. It is about choosing the solution, or combination of solutions, that best fits your life. For some retirees, a blended approach can make a lot of sense: using a life annuity to cover essential monthly expenses, while keeping some assets in a living annuity to provide flexibility, growth potential and access for discretionary goals.

Fareeya: That’s such a good point. Your plan should reflect your reality – your health, your marital status, whether you want to leave a legacy for children, and even your family history. Retirement planning is deeply personal, which is why good financial advice is so important. There’s no one-size-fits-all solution. What works for your best friend or your neighbour might not work for you.

Krishna: And let’s not forget – retirement is about enjoying life. You’ve earned it. The right decisions now mean you can focus on travel plans, hobbies, or simply spending time with loved ones without worrying about running out of money. These decisions can feel complex because it’s not just about numbers – it’s about your health, your spending needs, your family, and your appetite for risk. A financial adviser helps you weigh those factors and pick the option that aligns with your goals.

Fareeya: My biggest tip for anyone at this stage? Don’t rush. Sit with your financial adviser and explore the options carefully. This is your future, and those choices should give you both financial security and confidence. Retirement should be about living well, and be a chapter of confidence, not uncertainty. You have choices – and with expert guidance, those choices can help you with a plan that gives you confidence, clarity and peace of mind in this phase of life.

Income certainty is not a luxury, it’s a necessity. For personalised certainty, speak to a Momentum accredited financial adviser or visit our website here.

Momentum Wealth is part of Momentum Investments and Momentum Group Limited. Momentum Wealth (Pty) Ltd is an authorised financial services provider (registration number 1995/008800/07, FSP number 657). Momentum Metropolitan Life Limited is an authorised financial services and credit provider (registration number 1904/002186/06, FSP number 6406). The information in this article is for general information purposes and not intended to be an invitation to invest, professional advice or financial services under the Financial Advisory and Intermediary Services Act, 2002. Momentum Investments does not make any express or implied warranty about the accuracy of the information herein.