South Africa faces a retirement crisis – FNB

ONLY 10% of respondents in the 2025 FNB Retirement Insights Survey are planning to fully retire at 60, according to recently released data.

- DIEKETSENG MALEKE

Now in its third year, the FNB Retirement Insights Survey reveals that although 60% of South Africans under 60 say they have a retirement plan, very few are actually on course to reach their goals. Economic pressures, ranging from debt to rising living costs, are causing many to delay contributions, dip into savings early, or abandon retirement planning entirely.

According to the data, middle-income earners, who are often seen as the engine of retirement savings, are among the hardest hit. Contributions to retirement annuities in this group have dropped dramatically, from 51% to just 34%, as day-to-day expenses take precedence over long-term planning.

Lytania Johnson, CEO of the FNB personal segment, stresses the urgency of the matter:

"The gap between expectations and outcomes must be urgently addressed. There is growing positive momentum in our industry and a visible shift from a 'one day' to a 'day one' mindset. We are seeing more South Africans recognising the need to plan and take initial steps but awareness without action won't secure the futures that people want. That's where financial institutions and retirement funding providers, and intermediaries now have a more critical role to play than ever before."

Rather than apathy, it’s a sense of overwhelm that is paralysing many South Africans.