Let’s be honest — when you’re five or ten years away from retirement, it’s tempting to ease off the gas. Maybe the house is nearly paid off. The kids are (finally) financially independent. And after decades of working and saving, you’re thinking: Surely I’ve done enough by now?
Not quite.
At House of Ellis, we’ve seen time and time again how the final years before retirement aren’t just important — they’re often the most financially powerful years of your entire pension journey. And if you’re still actively contributing to a retirement annuity or pension fund, these years can make the difference between a comfortable retirement and a confident one.
Here’s why.
1. The Power of Compound Growth Has Its Big Moment
By now, your investments have been growing for 20, 30, maybe even 40 years. Every extra rand you add in your final years is no longer starting from scratch — it’s joining a much larger investment base that’s already doing the heavy lifting.
It’s like adding fuel to a rocket mid-flight. Even small contributions in your 50s and early 60s can generate big returns over the next 5 to 10 years — and possibly well into retirement if your investments stay active.
2. Catch-Up Contributions Can Close the Gap
Let’s say you weren’t able to contribute much in your 30s or early 40s (hi there, bond repayments and school fees). That’s normal. But here’s the good news: SARS allows you to contribute up to 27.5% of your taxable income (capped at R350,000) to a retirement annuity — and it’s tax-deductible.
These “catch-up” contributions, especially if you’re earning well in your later career years, can reduce your tax bill and turbocharge your retirement savings in one go.
3. You’re Closer Than Ever to Knowing What You’ll Actually Need
In your 20s and 30s, retirement is a vague concept. But in your 50s and early 60s? It’s real. You know your lifestyle. You know your medical needs. You’ve got a clearer picture of how much you’ll need to live the life you want — and whether there’s a shortfall.
This is the perfect time to sit down with our team and check:
- Are your current contributions enough?
- Should you switch to a lower-risk portfolio
- Do you need to top up aggressively in the next few years?
4. Retirement is Getting More Expensive
We’re living longer. Medical costs are rising. And let’s be honest — many of us don’t want to just survive after 65; we want to travel, treat the grandkids, or start that side hustle.
That’s why the final years of saving aren’t about scraping by — they’re about making sure your future self has options, not restrictions.
5. It’s Your Final Say in What Retirement Looks Like
Think of your pension journey like a long, winding road. The final stretch is where you can pick your exit:
- Downsize and coast?
- Stay in your home and travel every year?
- Semi-retire and consult part-time?
How you finish strong now gives you more power to choose your path later.
Our Take?
Don’t coast to the finish line. Sprint it.
You’ve worked too hard for too long to let the last few years go quiet. With the right planning (and a few smart moves), these years can completely reshape your retirement picture — for the better.
Need help checking if you’re on track? Let’s chat.
House of Ellis
Smart. Simple. Financial advice that works in the real world.