Is $1 million enough to stop?

RETIREMENT: ALIGN YOUR RESOURCES

- Hardi Swart

Recently, I received a question from a 63-year-old engineer working in the United Emirates who asked, "Is $1 million (about R17.6 million) enough to retire in South Africa?"

This is a common concern for South Africans living abroad, particularly in regions like the Middle East, where many expatriates accumulate significant savings but are unsure whether their nest egg will suffice for a comfortable retirement in SA.

To answer this question, we'll explore the financial realities of retiring in SA.

Understanding $1 million benchmark A million dollars is a substantial amount of money. However, whether it is enough to retire depends on several variables:

• Monthly expenses: What are your expected costs for housing, utilities, groceries, transportation and medical care?

• Lifestyle choices: Do you plan to travel extensively or maintain a more modest lifestyle?

• Longevity: With advances in health care, many retirees live well into their 80s and 90s, which means your money may need to last 25-30 years.

• Inflation: SA's higher inflation rate can erode purchasing power.