With South Africans living longer and healthier lives, retirement planning has become as much about lifestyle as it is about finance. Yet many underestimate the ongoing costs of retirement living.
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This is according to Antonie Goosen, Principal and Founder of Meridian Realty, who says that people often focus on the purchase price of a retirement unit but overlook the monthly costs that come with it,” says Goosen. “Levies, healthcare, maintenance and eventual resale values are all part of the equation.”
Levies and estate costs
Goosen explains that monthly levies in retirement villages typically cover security, garden services, insurance and communal facilities, but can vary widely. “In well-managed estates, levies can range from R2,500 to R7,000 per month depending on services offered,” he notes. “What is crucial is understanding what is included, for instance, whether frail care access, medical panic systems or Wi-Fi are part of the package.”
He adds that levies tend to increase above inflation because of rising energy and healthcare costs. “Retirees should plan for at least 7 to 9 percent annual increases to avoid surprises.”
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Healthcare and lifestyle costs
Healthcare remains the biggest unknown. “Many retirement estates now offer step-down or frail care facilities, but costs can escalate quickly if specialised care is required,” says Goosen. “It is important to choose a development with flexible healthcare options, so you can scale up care as needed rather than relocate.”
Lifestyle amenities such as clubhouses, gyms, shuttle services and dining facilities also add to monthly costs. “These enhance quality of life, but retirees need to assess whether they will actually use them,” he cautions.
Maintenance and resale
Freehold retirees must still budget for home upkeep. “Roofs, geysers and exterior maintenance can be costly if not covered by levies,” Goosen says. “In estates with full maintenance plans, you pay more upfront but avoid nasty surprises later.”
On resale, Goosen advises buyers to understand the life rights or sectional title structure of their purchase. Life rights units offer lower entry costs but no capital appreciation, while sectional title units can be resold at market value. Each suits a different retirement strategy.”
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The new retirement reality
According to Goosen, many South Africans are retiring later or semi-retiring, supplementing income with part-time work or rental revenue. “Retirement is no longer a single event, it is a transition phase that may last 20 or 30 years,” he says. “Planning for that requires financial realism and flexibility.”
He believes the Western Cape and coastal KwaZulu-Natal remain top choices for retirees, but smaller inland towns like Robertson, Montagu and Clarens are gaining traction due to lower living costs and strong community life. “Ultimately, retirees should focus on lifestyle sustainability, not just affordability,” Goosen concludes. “It is about finding a home that supports the life you want to live, not one that limits it.”
Additional Insights from Quay 1 International Realty
Retirement living isn’t just about the purchase price; it’s about the ongoing costs and care needs. Levies, which usually cover security, gardens, building insurance (for sectional title), some municipal services, and access to facilities, typically range between R2,000 and R8,000 and can increase by around 6–10% per year.
Healthcare is a major variable, as many estates offer clinics, assisted living, and frail care - with frail care commonly ranging from R15,000 to R30,000 per month, plus medical-aid premiums that rise with age.
Even with external maintenance covered, retirees should still budget for internal upkeep such as appliances, painting, and minor renovations. They should aim for at least 1% of the property’s value annually, with sectional title or life rights generally reducing maintenance costs compared to freehold properties, says Quay 1 International Realty.
Planning for resale and longevity
On resale, the ownership model matters. Some schemes include exit, refurbishment, or deferred management fees of 5–15%, and age restrictions for buyers can apply - all of which affect returns.
Sectional title usually offers stronger resale potential, while life rights trade capital growth for lifestyle security.
Experts recommend planning for at least 25 years of longevity, and for inflation that can outpace general living costs. A sound budget should include emergency savings, annual levy and medical inflation adjustments, and long-term care provisions.
By planning for levies, healthcare, maintenance, and resale, retirees can enjoy comfort and confidence knowing their finances are as secure as their surroundings, says Quay 1 International Realty
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