Many South Africans believe they can stop saving after retirement, but this isn't always true saving should be lifelong.
Nedbank’s Bridget Nkandu says that seniors must keep saving, as 90% of South Africans haven’t saved enough for retirement.
“Many hardworking South Africans see retirement as the finish line. Unfortunately, the financial reality for most people who reach this stage is very different from the dream.”
“It’s important to keep saving right up to the day you can turn off the alarm clock,” she said. With increased longevity and rising costs, especially healthcare, ongoing savings help counter inflation and ensure financial stability.
South Africa faces a retirement crisis, with only 6% of people on track to retire comfortably, according to the 10X Investments Retirement Reality Report. Despite this, the report highlights that many South Africans are not planning for retirement, citing economic pressures and insufficient savings.
Approximately half of respondents who had a retirement plan indicated that their plans are “probably” or “definitely” on track. Significantly, 29% of people over 50 indicated that their plans are “definitely not” or “probably not” on track.
According to 10X, it becomes difficult to correct any deficit in savings after reaching 50, and requires at least 30%-40% of a monthly salary to be invested into retirement savings in order to comfortably retire.
Almost three quarters of respondents (72%) whose plans were not on track gave “I am not able to save enough” as a reason.
Many South Africans under the age of 60 plan to work beyond retirement age, with many seeing retirement as a transition phase.
The FNB Retirement Insights Survey 2024 also found that nearly half of respondents are not planning for retirement due to economic challenges.
However, there’s growing awareness of the importance of financial education. According to FNB’s Lytania Johnson, “There is a greater awareness of the importance of education in overcoming those challenges.”
The survey shows many under 60s plan to work beyond retirement, viewing it as a transition phase. 25% intend to work full-time, while another 25% plan to reduce hours.
The gap between retirement expectations and reality remains significant, especially for those with lower incomes.
Despite the challenges, some trends show pre-retirees are taking steps to manage their finances more confidently, with many acknowledging the value of multiple income streams and disciplined financial planning.
When looking at income brackets, those earning the most are more likely to work full-time in retirement. Among FNB Wealth clients (earning over R150,000 per year), 76% plan to work full-time, 24% part-time, and none expect to fully retire.
In contrast, only 13% of Entry Wallet clients (earning under R3,500 per month) plan to work full-time in retirement, while 33% expect to fully retire.
Notably, many South Africans over 60 remain in the workforce—38% still work full-time, 30% earn a secondary income despite being retired, and 7% work part-time.
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