How to Retire Comfortably: Expert Insights from Ntapo Rakumakoe

Retirement is a milestone that many dream about, yet few truly prepare for. While the idea of stepping away from the workforce sounds appealing, the reality of maintaining financial security in retirement requires careful and early planning. Ntapo Rakumakoe, a seasoned financial planning coach with over a decade of experience, has dedicated his career to helping individuals make informed decisions about their financial futures.

The Journey to Financial Expertise

Ntapo’s journey into the financial planning space began with his studies at the University of Johannesburg, where he earned his BCom in Finance in 2012. Recognizing the importance of holistic financial planning, he pursued an Honours degree in Financial Planning in 2013 and later completed a Postgraduate Diploma in Investment Planning at the University of Free State in 2018.

After five years as a financial planner, Ntapo wanted to deepen his expertise and refine his approach to achieve better outcomes in his one-on-one client interactions. “A friend introduced me to the role of a Financial Planning Coach, and I was immediately drawn to the opportunity to help people on a broader scale,” he recalls. His expertise now goes beyond traditional financial planning, providing strategic coaching on long-term wealth creation, particularly in retirement planning.

The Harsh Reality of Retirement Planning in South Africa

Ntapo’s passion for retirement planning is rooted in an alarming statistic: only 6% of South Africans can maintain their pre-retirement lifestyle. “This reality hit close to home. I’ve seen how inadequate planning affects people in my community and my clients,” he shares. Many individuals fail to plan properly, assuming they will have enough time to save or believing they can work indefinitely.

According to Ntapo, the biggest mistakes people make when preparing for retirement include:

• Procrastination – Delaying retirement savings, underestimating the power of compound interest.
• Dipping into retirement savings – Failing to preserve funds when changing jobs.
• Assuming they can work forever – Ignoring health risks and job market uncertainties.
• Underestimating retirement expenses – Believing they will need less money in retirement than they do now.

When Should You Start Planning for Retirement?

“The best time to start planning for retirement is the moment you start earning an income,” says Ntapo. He emphasizes the power of compound interest, explaining that even small, consistent contributions can grow exponentially over time.

Starting early also helps cultivate healthy financial habits, such as disciplined budgeting, saving, and investing. This long-term mindset ensures that individuals are not only prepared for retirement but also equipped to handle financial responsibilities along the way.

The Four Pillars of a Solid Retirement Plan

Ntapo outlines the key components that form the foundation of a successful retirement strategy:

1. Consistent and Sufficient Contributions – Saving enough, early and regularly, to reach financial goals.
2. Planning for Longevity – With longer life expectancy, funds must last several decades.
3. Defined Retirement Goals – Understanding how much is needed to maintain a comfortable lifestyle.
4. Diversification and Discipline – A well-balanced investment portfolio and the ability to stick to a plan despite market fluctuations.

How to Measure Retirement Readiness

Assessing whether you are on track for retirement depends on personal circumstances, but one useful guideline is the Multiples of Annual Salary (MAS) approach:

• By age 30, you should have saved 1x your annual salary.
• By age 40, aim for 3x your annual salary.
• By age 50, strive for 6x your annual salary.
• By retirement age (65), you should have at least 8-10x your annual salary saved.

“This is not a perfect measure,” Ntapo clarifies, “but it provides a general idea of where you should be in your retirement savings journey.”

Inflation: The Silent Retirement Killer

Inflation can significantly erode the purchasing power of savings over time. “If inflation averages 5% per year, a basket of groceries that costs R2 000 today will cost over R5 000 in 20 years,” Ntapo warns. To counteract inflation, he recommends:

• Diversifying investments to balance risk and return.
• Factoring inflation into financial projections to ensure savings keep pace with rising costs.
• Regularly reviewing and adjusting retirement plans based on economic conditions.
• Seeking professional advice to create a tailored strategy.

Smart Investment Options for Retirement

For South Africans, pension funds, provident funds, and retirement annuities remain the most tax-efficient ways to save for retirement. These investment vehicles allow individuals to grow their money tax-free within the fund while benefiting from tax-deductible contributions.

Ntapo stresses the importance of understanding Regulation 28, which limits certain asset class exposures to protect retirement funds from excessive risk. “Balancing risk and return is crucial, and this is where professional financial advice makes all the difference,” he advises.

Starting Late? Here’s How to Catch Up

Not everyone begins saving for retirement early, but all is not lost. Ntapo shares these strategies for those who find themselves behind:

Increase your savings rate aggressively – Cut unnecessary expenses and allocate more towards retirement.
Adopt a higher-risk investment approach (with caution) – Consider equities for higher returns, but be mindful of volatility.
Resist withdrawing retirement savings – Preserve funds when changing jobs or facing financial hardships.
Consider extending your working years – A few extra years can significantly boost retirement savings.

Balancing Retirement Savings with Other Financial Responsibilities

Many people struggle to save for retirement while managing debts, education costs, and daily expenses. Ntapo suggests:

1. Creating a realistic budget – Track expenses and allocate funds wisely.
2. Prioritizing essential expenses – Cover necessities before spending on luxury items.
3. Dividing income into categories – Allocate funds for retirement, emergency savings, and debt repayment.

The Biggest Financial Mistake in Retirement Planning

The most common financial mistake people make is underestimating their retirement needs. Many assume they will live on less, but unexpected expenses—such as medical bills and home maintenance—can quickly add up.

“To avoid this, plan for a retirement lifestyle similar to your current one and establish an emergency fund specifically for retirement,” Ntapo advises.

The Key to a Secure Retirement

Retirement planning requires foresight, discipline, and a long-term mindset. The decisions made today will shape the quality of life in the future.

---

About the Expert

Ntapo Rakumakoe is a seasoned financial planning coach with over a decade of experience in finance and investment planning. He holds a BCom in Finance and a BCom Honours in Financial Planning from the University of Johannesburg, as well as a Postgraduate Diploma in Investment Planning from the University of Free State. As a CFP® professional, he is committed to helping individuals make informed financial decisions, particularly in retirement planning. His mission is to bridge the gap between financial literacy and long-term wealth creation.