Need to know
- Overcome procrastination: Financial anxiety often delays retirement planning, but Therèse Havenga, Head of Business Transformation at Momentum Savings, stresses that starting small today is essential for your future self.
- Maximise compounding: Saving R1 200 per month (increasing 6% annually) yields R882,000 over 20 years and R2.516 million over 30 years.
- Take action: Start small, automate transfers, boost contributions with raises, preserve job-change funds, and consult a financial adviser.
Saving for retirement early can make a significant difference to how much you accumulate, giving your money more time to grow through compound growth. The earlier you start a retirement savings plan, the longer your contributions and their growth can build on each other.
But for many South Africans, starting early is easier said than done. After essentials are covered, there may be little breathing room to save. And ‘later’ has a habit of moving further away as new expenses and life’s demands take priority.
The cost of waiting is simple: you lose valuable time for your money to grow.
So, when is the best time to save for retirement?
Why do we delay saving for retirement?
Delaying financial decisions is often less about poor time management and more about seeking short-term emotional relief.
Money can trigger anxiety, uncertainty and even avoidance.
Have our retirement savings fallen behind? Do the budget trade-offs look unattractive? Financial advice may feel intimidating when we believe we should already have the answers.
So, we hand the problem to our future self.
The challenge is that today's bills are immediate and demanding, while the person we will be in 20 or 30 years is much harder to picture.
Research published in 2025 by behavioural scientist Hal Hershfield and colleagues, involving more than 6 000 people, found that people who felt more connected to their future selves also tended to report healthier saving behaviour and greater financial wellbeing.
Saving for retirement shouldn't be seen only as sacrificing something today. It is also about sending something forward to the older you who will still need dignity, choices, groceries, electricity and healthcare.
Every time we delay, we potentially leave that person with less time for their savings to grow.
Why does saving early make such a difference?
Early contributions have longer to grow, and that growth has time to earn further growth – the magic of compounding, of clay gathering more clay.
Here’s an example of the impact of long-term saving over time.
Consider someone who is saving for retirement:
- Starts by saving: R1 200 per month
- Increases their contribution: 6% every year
The table shows how saving consistently over a 20- and 30-year period can significantly increase the illustrated value of your retirement savings and shows the equivalent value in today's money, after allowing for inflation.
*That is an illustrative example only.
Actual investment outcomes depend on factors such as investment returns, fees, inflation and how contributions change over time.
But the difference demonstrates an important principle: ten additional years can make a substantial difference to the amount you accumulate.
It is one of the reasons starting a long-term savings plan earlier can be so valuable.
Is it ever too late to start saving for retirement?
No. Starting later does not mean you have missed your opportunity to improve your financial future.
You cannot recover the years that have passed, but you can make the years ahead count.
The important thing is to start with an amount that is realistic for your current circumstances rather than waiting for the perfect time or a large amount of money.
A small, consistent contribution can be more useful than an ambitious savings plan that becomes impossible to maintain.
How to start saving for retirement today
You don't need to completely overhaul your finances to start building a retirement savings plan. A few practical steps can help make saving easier to maintain.
The best time to save for retirement is now
The answer to delaying your retirement saving isn’t more guilt, nor willpower. It is making the next step small enough to take and easy enough to repeat.
Saving early gives your money more time to grow. But if you haven't started early, don't let that become another reason to wait.
The years ahead still matter.
Start with what you can afford today, make it consistent and increase it as your circumstances allow. Your future self will benefit from the time you give your savings to grow.
This blog article was adapted from a recent article seen on nineyards.africa.
Get advice
The best time to start saving for retirement is now. Speak to a financial adviser for guidance on how much you need to save and for how long. From just R500 a month, you can turn your retirement planning into action and start building your future with the Investo Retirement Annuity from Momentum Savings.
About the author
Therèse Havenga
Head of Business Transformation at Momentum Savings
Therèse has over 20 years’ experience in financial services, spanning consumer insights, neuroscience, strategy, client experience, innovation and digital transformation. She holds a Master’s in Research Psychology and certifications in change management, product ownership, customer experience, coaching, and digital transformation. She is passionate about people-centred design, guiding transformation, and creating meaningful, insight-led impact.
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