Making the decision to retire or resign is one of the most important choices a government employee can face. Yet, there’s one critical mistake I see most members making—one that could cost them a fortune.
I’ve been working in this space for over 20 years, and this mistake is still the most common and costly error.
And the worst part?
Many members don’t realize they’ve made it until it’s far too late. By then, they’ve already lost money or locked themselves into a decision they can’t undo.
Hi, I’m Dhevan Naicker, and I specialize in helping government employees like you navigate the difficult decision of whether to retire or resign. In this post, I’ll uncover the number one mistake and share five proven strategies that can help you avoid this costly error and secure your financial future.
Stick with me until the end—these insights could be the difference between a comfortable future and a painful setback.
The #1 Mistake: Comparing Yourself to Others
The most common mistake I see is government employees comparing their situation to others. It’s tempting—many members reach out to colleagues, asking, “Which option did you choose?
Did you retire, or did you resign?” While this might seem like a quick way to make a decision, this mindset is a recipe for disaster.
Here’s why: Your situation is unique.
Even if someone shares your department, years of service, or salary, their life circumstances may differ dramatically from yours. Family dynamics, personal goals, and financial situations all play a huge role in the retirement vs. resignation decision.
- Do you have children or other dependents?
- What are your long-term financial goals?
- Do you want to leave a legacy for your family, or is that not a priority?
These are critical questions only you can answer. Don’t let someone else’s choices dictate your own future. You have to plan for your future, not someone else’s.
How Much Have They Researched?
Here’s another issue I see often: not enough research. While we offer free resources like the Retire vs. Resign Masterclass and an extensive YouTube channel, many members still come to me without having done their homework.
It’s easier to book a consultation and get answers quickly, but here’s the truth: the more you research on your own, the better equipped you’ll be to make a wise decision.
Don’t rely on hearsay or one person’s opinion. Research both sides thoroughly—retirement and resignation. Understand the tax implications, investment options, and long-term financial consequences.
If you don’t have a deep understanding of both options, it’s easy to make the wrong choice based on incomplete information.
So, ask yourself: How much research have you done? Have you explored both paths, or are you relying solely on the advice of others?
The Quality of Advice You Receive
The next step is to consider the quality of advice you’re receiving. I’ve worked with many members who seek guidance from general financial advisors or family members, but not all advice is equal. It’s crucial that the advice you get is specific to government employees.
Advisors who don’t specialize in government pension funds, tax laws, and resignation strategies might miss key elements that could cost you in the long run.
- Is the advice tailored to your unique situation?
- Does the advisor understand the intricate details of retirement vs. resignation for government employees?
Make sure you’re working with someone who specializes in helping individuals like you. The quality of your advisor could mean the difference between a smooth transition and financial regret.
How Much of the Advice Gets Implemented?
It’s not just about receiving good advice—it’s about implementing it. I’ve seen members who’ve received excellent advice but failed to act on it. Whether it’s tax planning, investment strategies, or understanding your pension options, implementation is key.
I’ve worked with many government employees who could have saved hundreds of thousands in taxes if they had followed the steps I recommended. Unfortunately, they didn’t implement those strategies, and as a result, they missed out on massive savings.
Don’t make the same mistake. Take action on the advice you receive—even if it means spending a bit more time to ensure you’re following through.
How Much Do You Have to Lose?
Now, here’s your secret weapon: How much do you have to lose?
This question is crucial. If you’re financially secure, you may not need to worry as much about taxes or legacy planning. But for many members, the stakes are high. If you’re a parent with young children, or if your retirement is a critical part of your financial security, your decision carries more weight.
- Do you have dependents who rely on you?
- Are you aiming to leave a legacy?
- Are you looking to minimize your tax burden?
The more you have at stake, the more attention you need to pay to every detail. How much effort are you willing to put into ensuring your future is secure? The higher the stakes, the more important it is to make the right decision.
Key Takeaways
To recap, here are the five strategies you need to implement to avoid costly mistakes:
- Don’t Compare: Focus on your unique situation. Your circumstances are different from everyone else’s.
- Do Your Research: Make sure you thoroughly understand both retirement and resignation options before making a decision.
- Get Quality Advice: Work with a specialist who understands the intricacies of government employee pensions.
- Implement the Advice: Don’t just listen to advice—put it into action.
- Know What’s at Stake: Understand how much you have to lose and plan accordingly.
Final Thoughts
Deciding whether to retire or resign is a major financial decision, and it’s one you can’t afford to get wrong. By avoiding these common mistakes and following the strategies I’ve outlined, you’ll be in a much stronger position to make the right decision for your future.
If you found this post helpful, don’t forget to subscribe to my channel for more expert insights that will help you navigate your retirement and resignation decisions with confidence. Click here to schedule your one-on-one consultation
Disclaimers:
Retirement Wellness SA is an Authorised Financial Services Provider – FSP 31609. This blog provides information, not advice.
Disclaimer: This information is not provided by or on behalf of the Government Employees Pension Fund (GEPF). We do not act on behalf of the GEPF.
