Image: supplied Middle-class retirement used to follow a predictable script: work hard, save steadily, stop working at 65, settle in a retirement cottage or old age home. But now, it seems like every new generation is rewriting that story. Economic shifts, longer lifespans, evolving careers, and new expectations mean “retirement” looks different depending on when you were born.
For Boomers, Gen X, and older Millennials, planning for retirement is already a complex balancing act. For their kids and grandkids, it will be something else entirely. The question isn’t whether to plan for retirement, it’s how to plan for a future that’s changing faster than ever.
Here’s what we know about what each generation is likely to face:
Boomers: The finish line generation
Boomers, currently aged 62 to 80, are closest to the traditional retirement ideal. Many have saved for decades, benefited from more stable pensions, and built careers with long-term employers. They tend to know their numbers, understand their timelines, and have a clear vision for their later years.
But even Boomers are adjusting. For many Boomers, a secure retirement estate is the ideal, with frail care. However, longer lifespans, rising medical costs, and the desire to stay active, financially and socially, mean earning and saving don’t end at 65. Instead, their financial plans have evolved. Many are choosing phased retirement, part‑time consulting, or encore careers to stay engaged and supplement their savings. Their biggest challenge is ensuring their money lasts as long as they do.
Boomers have had the shortest time to make use of new saving vehicles like Tax-Free Savings Accounts , but have the advantage of years in the market in their favour. We are also seeing that Boomers are the most likely to take their foot off the investment pedal too soon, by de-risking their portfolios too early. If you fall in this age group, it’s worthwhile using a tool like a Living Annuity Calculator, to see how your money might last, or speaking to a retirement expert about your living annuity fund and discretionary savings options.
Did you know you can get a free comparison report from 10X, so you can see if your investments could be doing more for you?
Gen X: The sandwiched realists
Gen X, aged 46 to 61, currently carries the heaviest financial load. They’re supporting children, helping ageing parents, and securing their own futures, while paying top tax rates because of their seniority at work. They’ve lived through recessions, the shift from guaranteed pensions to self-funded retirement, and the rising cost of everything from education to healthcare.
They’re diligent, detail‑oriented, and often anxious about whether they’re saving enough. Many invest consistently, watch markets closely, and recalibrate every few years. For Gen X, retirement isn’t a distant dream - it’s a looming deadline they’re worried about meeting.
There are indications that a large proportion are keen to follow the Boomer example of living in retirement villages but believe they simply cannot afford it. As a result, some Gen Xers are planning alternative retirement solutions, such as “van life”, in line with their generations’ famed fierce independence. As they make the last few investment decisions while they still have a steady income, many are finding it useful to chat to our investment consultants about their options. This helps give them the peace of mind that they’ve looked at all their options and taken full advantage of their last actively employed years.
Millennials: The late starters, fast catch-ups
Older Millennials in their early 40s are entering their peak earning years, but they’re also carrying financial hangovers from recessions, student debt, and a cost‑of‑living curve that has outpaced wage growth.
Millennials are the first South African generation to have access to TFSAs, which were launched in 2015, for the majority of their careers.
They’re tech‑savvy, investment‑curious, and open to alternative assets, yet many feel behind. For Millennials, who range in age from 30 to 45, retirement is less about stopping work and more about achieving flexibility. They’re looking for financial independence, side income streams, and the ability to choose how they spend their time. They’re redefining retirement as a lifestyle goal rather than a fixed age, and they’re willing to hustle, diversify, and experiment to get there.
The FIRE movement (from its focus on Financial Independence, and Retiring Early) is a strong motivator for this generation, who are also very cost-conscious. If this is you, make sure you understand the Effective Annual Cost (EAC) of your investments to make sure they’re not costing you too much. Even fractions of a percentage can add up to tens of thousands of rands as compound interest works against you in the form of higher fees.
Gen Z: The flexible planners
The oldest Gen Zers are 29 years old, and only beginning to think about retirement, but their mindset is different. They expect non‑linear careers, multiple income streams, and hybrid work. They’re financially literate earlier, yet uncertain about long‑term planning in a world that changes quickly. One of their best options might be a flexible, low-cost retirement annuity that can adjust to their changing circumstances.
For them, retirement may be less of an endpoint and more of a lifestyle design challenge, one that blends work, rest, reinvention, and personal freedom.
If you fall in this age group, do the maths using one of our investment calculators to see what you are likely to need and how to manage your savings timeline to your advantage.
Gen Alpha: The futurists
Gen Alpha is currently under 16 and still in school, but their retirement will look nothing like any of the previous generations’. They’re likely to live longer than any generation before them, which means planning for 30 or even 40 years of life after full‑time work. According to the World Economic Forum their careers will be shaped by AI, automation, and constant reinvention. Think of multiple careers, not just multiple jobs.
They’ll learn about money earlier through digital tools that make financial literacy second nature. And as work evolves, new forms of income support may emerge to help them navigate a more automated economy. For this generation, retirement won’t be a single moment, it’ll be a series of pauses, pivots, and reinventions.
Some of them, however, will have Millennial and Gen Z parents who started saving in TFSAs for them from birth. If they leave the money in the TFSA until retirement (rather than drawing from it for studies or buying a home), this will give Gen Alpha roughly five to six decades of compound interest at retirement. The TFSA calculator will give you an idea of the headstart you can give your child’s retirement if you are a Gen Alpha parent.
Where does that leave you?
Whatever age you are right now, you’re navigating the most complex retirement landscape yet. You’re balancing responsibilities, watching markets, and trying to ensure that the money you invest today becomes the freedom you or your kids want tomorrow.
The good news? You’re also among the most financially aware generations in history. With a strategy that’s flexible, diversified, and regularly reviewed, your retirement can still be exactly what you’ve worked for.
And if all of this seems just too confusing and you’d like a sounding board, you are not alone - talk to us. DM
About 10X Investments
At 10X Investments, we believe that all South Africans can understand the fundamental decisions of their financial lives and make those decisions for themselves. We empower South Africans to build brighter futures with cost-effective investment solutions that are focused on long-term retirement outcomes, not one-year outperformance, and simple, efficient and customer-centric service.
The content herein is provided as general information. It is not intended as nor does it constitute financial, tax, legal, investment, or other advice. 10X Investments is an authorised FSP # 28250.
The 10X Living Annuity is underwritten by Guardrisk Life Ltd.