<\/p>\n
Retirement planning has traditionally focused on the value of a client\u2019s retirement savings at the point of retirement.<\/p>\n
Today, advisors are increasingly helping clients plan for a retirement that could last 25\u00a0years or more, with a greater focus on whether they can sustain their desired lifestyle they want for decades to\u00a0come.<\/p>\n
A successful retirement depends on how early clients start, how consistently they contribute, how long they stay invested and how sustainably they draw an income from their savings.<\/p>\n
Why waiting costs more than most clients realise<\/p>\n
Many people only start engaging seriously with retirement planning when retirement is already approaching.<\/p>\n
A recent industry survey found that, on average, retirement fund members begin engaging with their fund three to four years before retirement<\/p>\n
Moreover, many seek financial advice just 20 months before retiring, by which point much of the benefit of compounding has already been lost.<\/p>\n
Analysis by Discovery Invest highlights the impact of time in the market. Clients who start saving for retirement earlier and remain invested for longer may need significantly lower contribution rates to reach their retirement income goals than those who delay saving.<\/p>\n
The retirement income advantage of starting early (Discovery Invest, July 2026)<\/p>\n
As illustrated, a client who starts saving at age 20 may need to contribute 13% of their salary to replace 75% of their income, assuming they retire at 65.<\/p>\n
If they start at 40, that contribution jumps to 38%.<\/p>\n
Waiting until age 50 could mean having to save almost 80% of their salary each month to achieve a comfortable retirement income.<\/p>\n
Consistency creates more choice over time<\/p>\n
Saving consistently does not mean being inflexible. Rather, it means keeping the long-term goal in view and avoiding decisions that could permanently weaken one\u2019s retirement position.<\/p>\n
The most valuable retirement savings behaviours are simple:<\/p>\n
Start early
\nContribute regularly and make additional contributions where possible
\nStay invested through market cycles
\nReview the plan when life changes, and
\nLive well and draw income sustainably in retirement.<\/p>\n
Discovery Invest\u2019s shared-value approach is built around these behaviours, rewarding clients for actions that support better long-term investment outcomes.<\/p>\n
As part of Discovery Invest\u2019s shared-value model, clients who engage in qualifying behaviours may receive behaviour-linked rewards, such as boosts that increase the value of their investments.<\/p>\n
While retirement discussions often focus on product features, fees and performance, long-term outcomes are ultimately shaped by the choices clients make along the way.<\/p>\n
Longevity raises the stakes<\/p>\n
People are living longer than ever. Global life expectancy is now 73.4 years, roughly double what it was a century ago, changing the retirement planning equation.<\/p>\n
Living longer can mean funding longer retirements, with income, healthcare and lifestyle needs extending over more years than many clients expect.<\/p>\n
Health also plays an increasingly important role, influencing when clients retire, their healthcare costs and how long their retirement savings need to last.<\/p>\n
For advisors, this reinforces the importance of helping clients plan for a longer retirement. Starting early, reviewing plans regularly, maintaining appropriate contributions and making sustainable income-withdrawal decisions can help support long-term financial resilience.<\/p>\n
Shifting the conversation from cost to outcome<\/p>\n
Clients will continue to ask about costs, flexibility and access to their retirement savings, and advisors should answer these questions clearly.<\/p>\n
But the ultimate value of a retirement solution is not simply reflected in today\u2019s costs; it is whether the solution helps clients stay invested and achieve their long-term goals.<\/p>\n
In many cases, time in the market may have a greater impact on long-term investment outcomes than modest reductions in fees. Discovery Invest analysis indicates that, under the assumptions used for a R1 million lump-sum investment, investing two years earlier could yield a higher investment value than investing later.<\/p>\n
This shifts the conversation from \u2018What does this cost?\u2019 to \u2018How can I maximise my retirement outcome?\u2019.<\/p>\n
The value of time: How investing earlier can improve long-term outcomes (Discovery Invest, July 2026)<\/p>\n
The advisor\u2019s opportunity<\/p>\n
Turning long-term retirement goals into practical actions clients can take today requires solutions that are easy to understand, simple to maintain and designed to support consistent behaviour over time.<\/p>\n
Advisors play a crucial role in helping clients transition from retirement savings plans to retirement income plans.<\/p>\n
Discovery Invest\u2019s shared-value approach is designed to support this journey by rewarding behaviours that encourage long-term investing. This commitment to client experience was recognised when Discovery Invest was named the Customer Experience Winner in the Investment Policies and Savings Industry in the 2026\/2027 Ask Africa Orange Index\u2122.<\/p>\n
As people live longer, retirement planning becomes less about simply reaching retirement and more about being financially prepared to enjoy the opportunities that longer lives can bring.<\/p>\n
By helping clients start early, stay invested and maintain healthy financial habits, advisors can help them build greater confidence in their retirement future.<\/p>\n
Brought to you by Discovery Invest.<\/p>\n
Moneyweb does not endorse any product or service being advertised in sponsored articles on our platform.<\/p>\n
#Living #longer #changing #retirement #conversation<\/p>\n","protected":false},"excerpt":{"rendered":"
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