The 10X Investments Retirement Reality Report 2023/2024 reveals a concerning scenario for South Africa's retirement landscape, with only 6% of the population on track for a comfortable retirement.
Drawing data from the 2023 Brand Atlas Survey, encompassing 15.4 million economically active South Africans, the report highlights a persistent lack of retirement planning and confidence among citizens.
Despite economic challenges, this year's survey reflects minimal change in South Africans' inclination or ability to plan for retirement compared to the previous year.
With 49.2% of the adult population below the poverty line, the report underscores the critical need for informed financial decisions.
Tobie van Heerden, CEO of 10X Investments, notes a slight increase in recognising the importance of retirement planning compared to the previous year.
However, the report emphasises the significant gap between retirement expectations and the challenging realities faced by those nearing retirement.
Key Findings:
Approximately 72% of respondents with off-track retirement plans cited an inability to save enough.
Those over 50 struggling to correct savings deficits face challenges, requiring substantial monthly investments.
37% of respondents with retirement plans were uncertain about the costs, highlighting a lack of awareness.
Women, consistently rated lower in financial wellbeing metrics, showed lower retirement planning engagement compared to men.
Economic challenges, COVID-19 impact, and job changes led to 56% of workers cashing in retirement savings.
The report indicates a decline in the number of people retiring on their own terms, dropping from 70% in 2021 to 60% this year. This trend reflects the challenging economic climate, with employers increasingly compelling older workers to take early-retirement packages.
Despite these challenges, only 35% of retirees who saved for retirement express confidence that their savings will last, underscoring the need for informed financial decisions in these uncertain times.
The report is based on the findings of the 2023 Brand Atlas Survey. Brand Atlas tracks and measures the lifestyles of the universe of 15.4 million economically active South Africans – defined as those living in households with a monthly income of more than R6,000, aged 16+, with internet access through online completion surveys.
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