‘I’ve seen people in my position make poor financial decisions out of loneliness or fear, and I don’t want to end up struggling to get by’
—Anxious in My 60s
Dear Red Monkey,
I’m approaching my 70s and feeling anxious about my financial future. Although many people do well in their 60s, I’ve noticed that by the time they reach their 70s, they often struggle financially. Here in South Africa, the cost of living is skyrocketing—electricity, fuel, rentals—and it feels as if there’s no relief for retirees. In fact, it seems like the South African Revenue Service is squeezing pensioners dry. I recently read that Al Pacino found himself in financial trouble in his 70s, needing to work in ways he never imagined. I’ve also heard that some people, especially women, face loneliness and make poor financial decisions. For example, one woman I heard about was swindled on Tinder and now must sell her home, and a widower I know allowed a woman to move in with him who is now freely spending his money. His children from overseas even had to come to South Africa to get his finances back on track. How can someone plan ahead so that they don’t run into financial trouble in their 70s? What advice can you give to help ensure I don’t run out of money in the years to come?
—Anxious in My 60s
Dear Anxious,
You’re right to think carefully about the years ahead. The 70s can be a financially vulnerable time for many, especially with rising costs and, as you mentioned, sometimes poor decisions made in moments of loneliness or emotional need. Preparing now is wise, and by focusing on a few key areas, you can work to secure both your finances and peace of mind.
First, it’s essential to avoid overextending your savings when you retire. While it’s natural to want to enjoy the fruits of your hard work, adopting a “slow burn” approach to spending can help. Treat yourself occasionally to special meals or experiences, but try to make these feel like the treats they are, rather than habits. The bigger expenses—like new cars, homes, or luxury upgrades—are best considered carefully, as they can eat into your retirement funds quickly.
It’s also smart to be cautious with your financial decisions, especially if you’re experiencing feelings of loneliness. Sadly, many people have faced loss or isolation only to find themselves in situations where their money was mismanaged or, worse, manipulated by others. Don’t let fear of loneliness cloud your judgment. If you’re feeling isolated, look for community-based support groups or trusted friends and family rather than online connections that could lead to risky decisions.
To deal with rising expenses—particularly electricity, where charges are affected by years of mismanagement—explore alternatives like energy-saving measures or solar options that might offset costs over time. Reducing these types of overheads can protect your monthly budget, letting you preserve your funds for things that truly enhance your life.
Finally, consult a knowledgeable financial planner who understands the South African market and the unique pressures retirees here face. A good financial advisor will help you budget realistically and avoid common retirement pitfalls. They can provide an objective eye on any potential financial commitments, helping you make choices that protect both your wallet and your peace of mind.
With foresight and balance, you can make the most of this next stage of life while protecting yourself against the worries that weigh on you now. Here’s to a secure, joyful, and financially sound future ahead.
Warm regards,
Red Monkey
