According to FNB’s Retirement Insights, most pensioners underestimate how much money they’ll need to live comfortably in retirement.
In cities, a single pensioner could live comfortably on R9 000 a month. That increases to R14 000 for a couple.
But in these coastal towns, pensioners can live on at least R6 000 a month.
The Coastal Towns with Affordable Property
In 15 years, if inflation continues as it has, pensioners will need R18 400 to live comfortably.
Living in an affordable area means pensioners can reduce the impact of inflation.
Coastal areas are especially affordable as they provide free access to outdoor activities.
Most of South Africa’s most affordable coastal property is located on KwaZulu-Natal’s South Coast.
In areas like Ifafa Beach, Mtwalume, and Hibberdene, buyers can get 2- and 3-bedroom townhomes for less than R450 000.
Bond repayments in these towns range from R3 100 to R4 500.
With a 20-year bond and no down payment, pensioners will need at least R9 100 a month.
However, many homes sell for cash.
Pensioners who can afford the cash payment can live comfortably on R6 000.
There are also properties along the Sunshine Coast and parts of the West Coast that sell for below R500 000.
However, the main difference between these areas is the levies.
Rates and taxes in Ifafa Beach, Mtwalume, and Hibberdene are less than R500 a month.
Ifafa Beach is the cheapest.
Pensioners get a rebate of R295 000 on the market value of their home.
Levies are less than R2 500 in each of these towns. In some instances, levies can dip to R1 400.
The areas are also rather safe.
Ifafa Beach, Mtwalume, and Hibberdene all fall under the Hibberdene police precinct.
The precinct has a 2.22% crime rate.
The Best Affordable Coastal Retirement Town
Pensioners with a slightly higher budget who want to be near amenities may want to consider Scottsburgh on KwaZulu-Natal’s South Coast.
The town has a hospital and a small shopping district.
However, the cheapest property in Scottsburgh is a 1-bedroom flat in the town’s centre. This sells for R300 000.
To get more space, pensioners will need at least R600 000. However, they can save some money on travel.
The town’s supermarket and medical facilities mean pensioners don’t have to travel to Durban for basics, which could reduce spending by R800 a month.
Rates in the area start at R600 a month.
Levies are far higher, at R2 250 a month.
However, with the reduction in fuel spending, Scottsburgh pensioners can also live on a budget of R6 000 a month.
