Retirement income specialist Just SA's 2024 retirement tracking study reveals a notable increase in the importance of setting retirement goals among respondents over the past five years.
In 2018, only 40% set specific retirement goals, whereas in 2024, this figure rose to 60%.
Bjorn Ladewig, Head of Business Development and Marketing at Just SA, commented on the findings, noting progress in public education efforts by the retirement industry.
However, he expressed concern that 40% of respondents still do not set retirement goals, emphasising the critical role of goal-setting in understanding future income needs and financial planning adequacy.
The study, initiated in 2015, aims to gauge the needs of the South African retirement market. This year's survey included 395 respondents, spanning pre-retirees and retirees aged 50 to 85.
Key themes emerged from the analysis, including self-confidence, retirement confidence, and contextual confidence. Self-confidence relates to respondents' attitudes about their retirement planning skills, revealing an increase in those admitting uncertainty about planning—from 28% in 2022 to 54% this year.
People should ideally save 25x annual income for a sustainable retirement.
• Average annual household income is around R3oo 000
• Meaning they should save over R7 million for a sustainable retirement
• But have only saved about 60% of the sustainable target
Ladewig stressed the importance of seeking expert financial advice, which only 30% of respondents reported doing.
Retirement confidence, reflecting assurance in financial readiness for retirement, showed improvement, possibly indicating recovery from post-COVID economic impacts. Respondents prioritised financial security over flexibility, with 84% emphasizing the importance of retirement income keeping pace with inflation.
Contextual confidence considers external factors influencing retirement planning, such as economic conditions and health projections. Many retirees expressed reliance on bond-backed retirement solutions lacking inflation protection. Concerningly, few had plans for potential cognitive decline due to conditions like Alzheimer’s or Dementia.
Intended use of retirement savings
Needs remain largely unchanged
Comments