Building a confident future: rethinking retirement in South Africa

THERE is a hard truth we can no longer ignore: if we don't act now, most working South Africans will have no choice but to work until they're 80. Not because they want to, but because they have to.

- KANYISA MKHIZE

When it comes to retirement, expectations often do not meet reality. The consumer portion of this year's study revealed that respondents expected to retire comfortably at the age of 60. However, Sanlam Corporate - our Age of Confidence research showed a starkly different picture: South Africans, on average, may need to work a full two decades past the normal retirement age to maintain their lifestyle.

Additionally, our 2025 Benchmark study found that almost half of respondents use Google for financial information, and just 22% consult a financial advisor.

Unfortunately, retirement outcomes are unlikely to improve if people aren't seeking professional guidance and don't fully understand their realistic retirement age.

We hope that sharing this information prompts action. At Sanlam Corporate, we believe in the power of confidence. Financial confidence empowers people to plan, build, to thrive. It underpins everything from workforce productivity to community resilience. And right now, that confidence is under strain.

The reality behind the numbers

◆ Since the Two-Pot System came into effect on September 1, 2024, 36% of survey respondents had taken either the full maximum 'early access' allowance or a portion of this allowance. While these withdrawals may offer short-term relief, they significantly reduce the likelihood of a confident retirement.

◆ 47% of those who changed jobs previously cashed in their full retirement savings.