Retirement is widely viewed as a time to enjoy the rewards from a lifetime of hard work. Yet for some senior citizens, retirement does not necessarily mean an end to financial responsibilities.
Many retirees continue to support their children, grandchildren and extended family while managing rising living and healthcare costs. Financial wellbeing in retirement therefore requires balancing enjoyment and independence with long-term financial security.
According to Statistics South Africa’s General Household Survey 2024, 4.2% of households are skip-generation households, where grandparents live with grandchildren while 18.8% of children live with neither of their biological parents. These findings underline the role many older South Africans play in caring for younger generations.
For retirees, these responsibilities can make even routine financial choices more complex. Supporting relatives or contributing towards a shared household may reduce the money available for personal needs, leisure and unexpected costs.
Financial wellbeing is more than just cutting back
Financial wellbeing means meeting essential needs, absorbing financial shocks and making room for affordable enjoyment.
Ilse Smuts, Business Development Head at FNB Cash Investments says retirement planning should reflect how retirees want to use their money across essential needs, future commitments and discretionary experiences. “Financial planning should support the life you want to live, not only the expenses you need to cover. Retirement should make room for loved ones, personal interests and enjoyment without compromising future financial security.”
Travelling, dining out, enjoying hobbies, supporting family gatherings or occasionally visiting a casino may carry very different costs. Treating each as a planned expense makes it easier to decide how often it is affordable and where limits are needed.
Entertainment should have a defined place in the budget and be adjusted when living costs, medical expenses or family responsibilities increase.
Understanding your financial picture
Knowing the exact amount of money that comes in and what goes out each month gives you the confidence to enjoy life’s moments without compromising essential expenses, financial commitments or long-term savings goals. A clear understanding of your cash flow makes it easier to spend on entertainment and celebrations responsibly, while staying on track with your broader financial priorities.
Festive-season spending, in particular, can place unexpected pressure on a retirement budget if left unchecked. Planning ahead, setting spending limits and prioritising the occasions that matter most can help prevent unnecessary reliance on credit or dipping into emergency savings.
Dhashni Naidoo, Programme Manager for Consumer Education at FNB says the most effective financial plans are not static documents but living frameworks that evolve alongside your life. As your income, expenses, family circumstances and goals change, regularly reviewing and adjusting your plan can help ensure it remains relevant, practical and aligned to the lifestyle you want to maintain.”
“Regular reviews can reveal when rising costs, new family responsibilities or leisure spending are beginning to place essential priorities under pressure.”
Naidoo shares these five guidelines for protecting your financial wellbeing
- Know what you can comfortably afford: Start with your essential expenses, including food, housing, transport, healthcare, debt repayments and support for family. Set aside money for savings and unexpected costs before deciding how much is available for entertainment.
- Set a firm limit for enjoyment: Retirement should include activities that bring fulfilment and happiness. Whether it is a hobby, travel, social outings or entertainment, include these expenses in your financial plan rather than treating them as unplanned spending. If you gamble, set time and spending limits in advance, and never use money intended for essentials or savings.
- Keep social connection in your plans: Spending time with others is an important part of enjoying later life. Balance paid activities with free or low-cost options such as community events, walks, hobbies, family visits or social clubs.
- Check in with your finances regularly: Review your budget when your circumstances change. If costs rise or family commitments increase, adjust discretionary spending before you put essential expenses or savings at risk.
- Notice when spending stops feeling manageable: If gambling or another leisure activity starts affecting your monthly repayments and other bills, relationships, savings or peace of mind, take that seriously. Consider speaking to someone you trust or seeking professional support before the situation becomes harder to manage.
With the festive season approaching, setting expectations early, budgeting for planned celebrations and putting money aside for unexpected costs can go a long way in preventing financial pressure from carrying into the new year. Small, consistent decisions made today can help retirees enjoy meaningful moments with family and friends while protecting their longer-term financial wellbeing.
“The goal is not to choose between enjoying life and managing your finances responsibly. It is about finding the right balance between the two. By planning ahead and making intentional spending decisions, you can enjoy the moments that matter most today without limiting your financial options tomorrow,” concludes Naidoo.
