South Africa continues to face a pressing retirement savings challenge. The latest FNB Retirement Insights Survey 2025 reveals that while more people claim to be planning for retirement, few are financially on track to meet their goals.
Only 10% of South Africans intend to fully retire at 60, and less than 10% are expected to retire comfortably.
The third annual survey, conducted between 15 January and 8 February 2025, gathered insights from 1,041 participants.
It found that 60% of respondents under 60 have a retirement plan, yet mounting financial pressures – such as rising living costs and high debt levels – are prompting many to delay contributions, access savings prematurely, or abandon retirement products altogether.
Among middle-income earners, contributions to retirement annuities have dropped from 51% to 34%, as daily living expenses take priority.
The data also points to growing uncertainty within this segment about their ability to maintain retirement savings.
“There is growing positive momentum in our industry, and a visible shift from a ‘one day’ to a ‘day one’ mindset,” said Lytania Johnson, CEO of FNB Personal Segment. “But awareness without action won’t secure the futures that people want.”
Johnson wared that although intent is improving, action is lagging.
“The gap between expectations and outcomes must be urgently addressed… Financial institutions and retirement funding providers and intermediaries now have a more critical role to play than ever before.”
Sizwe Nxedlana, CEO of FNB Private Segment, agreed, noting that many are not ignoring retirement, but feel overwhelmed. “What’s clear is that most people aren’t ignoring retirement, they are just overwhelmed by it.”
He added that even those with a plan express anxiety over rising costs, healthcare expenses, and whether their savings will last. While younger respondents remain optimistic – many expecting to replace 75% or more of their income – experiences from older adults suggest caution.
Many over-60s are working longer than planned, cutting back on spending, or relying on support from adult children.
Additionally, the survey uncovered a concerning gap in estate planning. While 60% of respondents have funeral cover, only four in ten have a signed Will, and a third have never considered drafting one.
Misconceptions – such as the belief that Wills are only for the wealthy – are especially common among younger and lower-income individuals.
“Funeral cover is almost universal in South Africa because people want to ease the immediate burden on family. But a Will does that too, and more. It’s not just for the wealthy. It’s about protecting your family in the long term,” said Nxedlana.
More than half of participants expect to supplement their retirement income with part-time work or side hustles – a reflection of rising uncertainty and a desire for more flexibility.
“People aren’t just looking for products; they’re looking for options, guidance and a greater sense of control,” said Nxedlana.
