Planning late, paying later

SOUTH Africans understand the importance of planning for retirement early, yet many are leaving critical financial decisions until the final years of their working lives.

- DIEKETSENG MALEKE

This is one of the key findings from the 45th Sanlam Benchmark Survey, released this week, which reveals a significant gap between when South Africans believe they should start preparing for retirement and when they actually take action.

According to the research, South Africans believe retirement planning should begin at around age 35. In reality, however, retirement fund members only begin actively engaging with their retirement savings an average of 3.4 years before retirement, while many seek professional financial advice just 20 months before leaving the workforce.

The Sanlam Benchmark, the 2026 edition, surveyed 76 standalone retirement funds, 130 umbrella fund employers, 30 pensioners who retired four to five years ago, and 600 consumers, comprising employed individuals, people approaching retirement, and retirees. The findings draw on two separate studies conducted by research houses BRDC and Alltold.

The results point to a concerning reality: by the time many South Africans begin focusing seriously on retirement planning, many of the decisions that determine long-term financial outcomes have already been made.

Retirement confidence is built over a lifetime

Kanyisa Mkhize, chief executive officer of Sanlam Corporate, says retirement readiness cannot be achieved through last-minute interventions.

“Retirement planning also does not stop when someone leaves work. The first few years after retirement are critical because that is when a lifetime of savings is tested against the reality of living costs, healthcare needs, and longevity.”

The survey highlights the cumulative impact of financial decisions made throughout a person's career. Choices such as preserving retirement savings when changing jobs, increasing contributions over time, managing debt responsibly, and seeking professional financial guidance all play a significant role in determining retirement outcomes.