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For South Africans aged 29 to 44 – the millennials – daily life is a juggling act: paying off student loans, raising kids, helping ageing parents and still trying to squeeze savings into that retirement fund that feels decades away.
Add the rising cost of living and job market uncertainty, and it’s no wonder this generation needs to redefine what retirement even means.
But there is some good news. Some millennials are, in fact, redefining retirement, focusing on flexibility, health and diverse income streams instead of a single finish line.
Here’s how they’re doing it.
1. Planning to work longer
Gone are the days when retirement meant closing your laptop at 65. Some millennials are planning for a phased or flexible retirement – one where they might work part-time, consult or turn a passion into a second career.
It’s not just about necessity either. Work provides structure, community and purpose, which are all things that a purely “off-duty” retirement can lack. With better health and longer lifespans, millennials are building careers that can evolve with them rather than end abruptly.
Still, planning to work longer doesn’t mean avoiding saving now. It’s about creating options so that working later in life feels like a choice, not an obligation.
2. Growing second income streams early
The side hustle has quickly shifted from a fad to a real financial strategy. Freelancing, small businesses and digital gigs are helping some millennials supplement their salaries now and build the foundation for future income.
The smartest ones aren’t waiting for “one day”. They’re using these extra earnings to boost their retirement savings today, taking advantage of compound interest (the superpower that grows money over decades).
A few hundred rand extra invested each month in your 30s can make a six-figure difference by your 60s. The sooner you start, the more time your money has to work for you.
3. Swapping DIY money moves for professional advice
Millennials are a famously independent bunch. They learned to Google everything, including their investment strategies. But even the most finance-savvy are realising that a professional financial planner can unlock extra growth and peace of mind.
According to global research, working with a financial adviser can add roughly 1 - 3% in annual growth to your investments through the power of tax efficiency, smart diversification and disciplined long-term strategy.
Financial advisers are evolving to meet millennial expectations – prioritising transparency, offering fee-based advice and using digital tools. It’s less about being “sold a product” and more about building a strategy together.
4. Living smaller and smarter
Minimalism isn’t just a design choice anymore. Instead of spending more as their income grows, some millennials are choosing to invest in experiences and healthier lifestyles rather than accumulating more possessions. By spending consciously on what adds real value to their lives, they’re keeping lifestyle creep (and the debt that follows) in check.
This shift may sound like it's coming from a place of deprivation, but it’s actually about freedom. Every rand that isn’t tied up in repayments or impulse spending can go towards investments that actually build long-term stability.
And since some millennials need to accept that they may earn less in retirement - and possibly retire later – these habits are setting them up to live well within their means.
5. Investing in health (because it pays off later)
Medical inflation is outpacing general inflation in South Africa by a wide margin, and healthcare is one of the biggest retirement expenses. Some millennials know this, which is why they’re taking steps now to stay healthier for longer.
Regular exercise, preventative check-ups, mental health care and avoiding lifestyle diseases are good habits, but for some millennials, they're increasingly a part of retirement planning. Every healthy habit today can mean thousands saved on medical bills later.
6. Rethinking property ownership
For previous generations, financial security often meant owning property. But for some millennials, that goal looks different. With home loan interest rates and transfer costs climbing and remote work making it easier to live anywhere, some are rethinking the value of buying a home. Instead of tying up their money in a bond, they’re opting to rent and invest what they would have spent on ownership costs.
Channeling capital into investments that offer growth potential and easy access to funds can make more sense than being tied to a single, hard-to-sell asset like a property.
The bottom line
Retirement planning is about building a secure, sustainable life – and the sooner you start, the more choices you’ll have.
If you’re ready to take control of your money story, the Truth About Money’s Financial Independence Course can help you get there. Learn how to manage debt, budget smarter and start building your long-term wealth plan. Sign up today - because the future belongs to those who plan for it!