Midlife Money Reflections

People usually think life slows down after fifty or sixty, but research tells a different story. Studies on happiness and ageing show that life satisfaction often peaks in our sixties, and many of our cognitive abilities – like judgement, problem solving, and perspective – keep improving with age. Researchers now say that people between 40 and 65 often make the most effective decisions.

Michael Avery, award-winning broadcaster and financial journalist, recently shared his Midlife Money Lessons. One of the strongest messages he wants to pass on to his daughters is this: don’t chase status or stuff – chase freedom. That’s the true purpose of money, and a conversation every parent should be having with their children as they step into adulthood. Click here to read his story

No – this is not a selfish or self-centred statement. Paying yourself first is one of the wisest money principles you can follow. It’s something I wish everyone embraced much sooner in life.

In midlife, many people find themselves stepping in to help ageing parents manage their day-to-day affairs. It’s often a gradual process: assisting with bank payments, attending medical appointments, or helping with day-to-day decisions. But when memory loss or illness begins to affect a parent’s capacity, it can leave families feeling overwhelmed and unsure of what to do next.

R2.8 million.

That’s what it could cost to put one child through 12 years of private school plus three years of tertiary education in South Africa – and that’s before factoring in books, uniforms, or accommodation. This estimate is based on today’s fees, projected to increase by around 6% annually.

Most parents want their children to feel equally loved. And sometimes, in trying to show that love, money becomes the measure. It’s important to remember that money does not equal love, and treating your children equally doesn’t always create fairness. Here are some reflections we share when love, guilt, support, and legacy start to feel tangled with clients.

You may have been paying life insurance premiums for years – perhaps even decades. But now, life looks different. Your children may be financially independent, your bond could be paid off, and your retirement savings might be on track. Naturally, you start to wonder: Do I still need this policy?

One moment, life feels financially secure. The next, a sudden event – like job loss, a business setback, or a family change – turns everything upside down. When that happens, the most important thing is to take control and focus on what you can do.

Retrenchment can be one of life’s most stressful experiences, but companies across the country are resorting to it to survive tough economic times. With the right preparation and knowledge, you can take control of your finances and make the transition smoother. A sound plan is essential, even if it involves some short-term sacrifices—the outcome is empowerment through preparedness.

We South Africans love our cars—whether it’s a sleek new model, a massive off-roader, or a customised, souped-up machine. Globally, cars are seen as status symbols, and many of us feel pressured to keep up with the trends, often diving headfirst into purchasing one.

Major changes are coming to retirement savings in South Africa, and if you’re in midlife, these changes could significantly impact your financial future. The new Two-Pot Retirement System, launching on 1 September 2024, offers more flexibility but comes with hidden risks that could disrupt your financial future if not managed wisely.

If you support your parents, adult children, and even grandchildren, you’re part of the Sandwich Generation. Balancing these responsibilities while planning for your secure future can seem nearly impossible, and managing savings, bond repayments, credit card debt, school fees, and frail care can be financially and emotionally demanding.

How are you doing right now? Amid your current transition, how are you feeling? Are you navigating the complexities and challenges of this phase of life smoothly? Or do you feel stuck, overwhelmed, overly cautious, unable to move forward? Can you put your challenges into perspective? Have you set reasonable goals for yourself?

Many people in midlife begin to think about the inevitability of retirement and the changes it will bring to their busy lives. The prospect of children leaving home and a shift in their careers introduces a mix of emotions – ranging from excitement and relief to anxiety and apprehension. However, one of the most significant concerns during this phase is how retirement might impact our working lives and the income we have worked so hard to earn.

When helping our clients build their estate plans or those who have inherited, I have noticed a crucial factor that is seldom considered – the responsibility they place on their loved ones to manage their legacy and money going forward, especially when the beneficiary has no context as to what the money was intended for. As humans, most of us already have complex relationships with money, and when it comes to inheritance, those complications tend to run deeper.

Deciding between renting or buying a home is a significant decision. While buying is probably the most expensive and largest investment you will make in your lifetime, the view that renting only benefits someone else’s bond repayments overlooks that home ownership might not suit everyone’s financial strategy or lifestyle preferences.

Knowing what you spend is essential to taking ownership of your money. We call this a Spending Plan – not a budget. It’s not about restricting or limiting yourself – it’s about knowing what you spend and intentionally allocating your money to achieve your goals.