As South Africa marks National Savings Month, more people are working beyond retirement age. Here are five practical ways to protect your retirement savings while continuing to earn an income.
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For many South Africans, turning 60 no longer means leaving the workforce for good. Some continue working because they enjoy it. Others consult, run small businesses or pursue long-held passions that generate an income. For many, however, the reality is that rising living costs mean retirement savings alone are no longer enough.
This shift is changing not only how people think about retirement, but also how they should manage their money.
People are living longer, staying healthier and remaining economically active for much longer than previous generations. Retirement is no longer always about stopping work altogether. For many South Africans, it's about having the flexibility to choose how they work while ensuring their finances continue to support them.
The trend is reflected in recent research. FNB found that nearly nine in ten South Africans under 60 expect to continue working in some capacity after reaching retirement age. Statistics South Africa's 2025 mid-year population estimates also show that life expectancy has increased significantly over the past two decades, while the 2026 Sanlam Benchmark Survey found that 60% of retirees now supplement their income through alternative sources, up from 47% just two years ago.
Working for longer can provide greater financial security, but it also requires a different approach to managing money. The same Sanlam survey found that retirees who withdraw a cash lump sum deplete it, on average, within just 14.6 months. Protecting your retirement pot therefore becomes just as important as continuing to earn an income.
Here are five practical ways to make that happen.
Keep retirement savings separate from everyday expenses
One of the quickest ways to reduce retirement capital is using long-term investments to cover short-term surprises.
Medical bills, home repairs and vehicle maintenance are inevitable, but repeatedly dipping into retirement savings can permanently reduce the money available later in life.
If you're still earning, use part of that income to build an emergency fund that can absorb unexpected expenses. Having accessible savings means your retirement investments can remain untouched and continue working for your future.
Borrow with a clear purpose
If you're considering taking on credit, be clear about exactly why you need it. Whether it's renovating your home, helping a grandchild with education costs or covering an unexpected medical expense, borrowing should always have a defined purpose.
Purpose-driven borrowing is easier to budget for and repay. It also reduces the risk of taking on debt that gradually becomes part of your monthly lifestyle rather than solving a genuine financial need.
Make your financial track record work for you
Years of responsibly managing debt, paying bills and building savings count for something.
Take stock of every income source, whether it comes from a pension, consulting work, rental property or investments, and compare it against your monthly expenses. Having a clear picture of your finances makes better decisions possible and provides confidence when applying for credit if you need it.
A strong financial history can also improve your chances of accessing more favourable lending terms, giving you greater flexibility without placing unnecessary strain on your budget.
Treat your second career like a business
Many retirees are using decades of experience to start consulting businesses, online ventures or small enterprises.
If your new venture requires funding, avoid using your retirement savings wherever possible. Instead, approach it like any business owner would by separating personal and business finances and ensuring that any borrowing is linked to generating future income rather than covering everyday living costs.
Keeping those finances separate also makes it easier to track whether the business is genuinely profitable.
Keep reviewing your financial plan
Financial planning doesn't stop once you retire.
Income may now come from several different sources, while expenses and priorities continue to change over time. Reviewing your finances regularly helps identify potential cash-flow gaps before they become problems and ensures your spending remains aligned with your long-term goals.
Seeking professional advice every few years, or whenever your circumstances change significantly, can also help you adjust your financial plan as your needs evolve.
The traditional idea of retirement as a permanent end to working life is becoming less common. For many South Africans, it has become another stage of earning, contributing and building financial security.
The greatest advantage many older South Africans have is experience. They've spent decades building careers, managing money and solving problems. Applying that same discipline to their finances can help them continue earning while protecting the retirement savings they've worked so hard to build.
* Caminsky is the finance director at Atlas Finance.
PERSONAL FINANCE