Few South Africans planning to retire

The high cost of living is making it difficult for people to save with many resigned to working into old age or relying on government grants

- Lyse Comins

South Africans are not saving adequately for retirement, with many expecting to depend on the government's old-age grant and to work as long as possible beyond their sixties in order to survive financially.

This is according to the FNB 2025 retirement insights survey released on Tuesday which reveals the immediate challenges facing workers and the stark divide between their retirement dreams and their financial preparedness.

It exposes deep-seated anxieties facing workers and retirees, indicating that only 10% of respondents plan to fully retire at 60. While 60% of South Africans under this age claim to have a retirement plan, financial pressures, procrastination and inadequate estate planning threaten their ability to achieve a secure future.

According to the survey, there has been a decline in retirement annuity contributions among middle-income earners from 51% last year to 34% this year as servicing debt and living costs take precedence.

The middle class, in particular, expressed uncertainty about saving adequately, with many delaying contributions or dipping into their savings prematurely.

"The gap between expectations and outcomes must be urgently addressed," said Lytania Johnson, the chief executive of FNB's personal segment division.