Otis Mokoena, a 35-year-old architect, juggles responsibilities as a father of two young children while financially supporting his ageing parents. Like many South Africans, Otis is part of the "sandwich generation," a group highlighted in the Old Mutual Savings and Investment Monitor (OMSIM) 2024 findings. The report reveals that 41% of working South Africans are caught between supporting both parents and children, a figure only slightly lower than the 43% reported in 2023.
Taking Control of the Future
Balancing support for two generations has made it challenging for Otis to prioritise his long-term financial goals. However, he recognised that retirement planning is important, not just for his future but for his children’s well-being too.
"I knew I had to change something," Otis says. "I want to enjoy my retirement without relying on my children for financial support."
The OMSIM 2024 findings reveal that many young families underestimate their retirement needs and although they know it is important to save, they delay starting.
Building Wealth for the Future
Otis decided to break this cycle by taking smaller steps towards a secure retirement and reached out to a financial adviser to help him start to plan.
His adviser assisted him in creating a budget that allowed him to maintain his current lifestyle, manage his expenses and set savings and protect goals for his future. Using the easy Old Mutual Retirement Calculator, Otis got an idea of how much he needed to save to achieve his goals. “It was eye-opening to see the numbers,” he says. “Starting early really makes all the difference.”
His adviser recommended the Old Mutual Max Investments Optimal Retirement Plan, which suited with his financial goals and offered a way to save within his current budget while benefiting from long term growth.
“The flexibility of the plan was what sold me,” Otis explains. “I can start small and increase my contributions as my income grows.”
The Power of Starting Early
By starting his retirement savings in his thirties, Otis is maximising the benefits of compound interest. Lizl Budhram, Head of Advice at Old Mutual Personal Finance, says, “With the right advice, even small contributions can help secure a family's future and ease financial strain in retirement. The earlier he starts, the longer his money has to grow, making saving for retirement potentially more comfortable.”
Guidance from a Financial Adviser
Otis’s proactive approach was guided by the support of his financial adviser. Advisers can help young families assess their financial situations and create plans tailored to their unique lifestyles and goals, “It’s not just about having a plan," Budhram adds, "it’s about having the right plan for your life.”
Take the First Step
Otis’s story shows it’s never too early to start planning and break free from relying on your children financially during your retirement.
Speak to your financial adviser today or visit oldmutual.co.za/retirement to learn more.
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