Happy Retirement: Why South Africans Need to Rethink Retirement Planning

Retirement planning is one of the most important financial decisions you'll ever make, but in

South Africa, it's also one of the most misunderstood. Too many pe

ople believe they'll "figure it

out later," only to discover that later is too late.

The reality is sobering:

● Only 5–6% of South Africans retire with at least 75% of their pre-retirement income.

● A staggering 71% of people have no retirement plan in place at all.

● Even among those who do save, the average retiree replaces only 30% of their income.

● Over a working life, even with uninterrupted employment from 20–65, you'll receive just

540 paychecks, and the average South African experiences only about 420 due to breaks

between jobs.

● And perhaps most alarming, 50% of retirees still support 1–5 family members during

their retirement years.

Why are we in this position?

Several key factors contribute to South Africa's retirement crisis:

● Debt: Around 75% of the average South African's income is consumed by debt

repayments.

● Cash flow pressures: 70% of workers say there's "nothing left at the end of the month."

● Late starts: High unemployment often delays the start of retirement saving, shortening

the investment window.

● Stagnant wages: Income has not kept pace with inflation, eroding savings capacity.

Retirement Hacks to Change the Story

While the stats may seem discouraging, the good news is that there are practical steps you can

take today to secure a better tomorrow:

1. Start as early as possible. Compounding is your greatest ally - even small amounts grow

meaningfully over time.

2. Treat retirement saving as a tax for your future self. Non-negotiable, consistent

contributions matter more than chasing the "perfect" investment.

3. Use tax incentives. Retirement contributions reduce your taxable income, and retirement

investments grow tax-free.

4. Trust in regulation. Retirement funds are well-regulated (e.g., Regulation 28), offering

strong protection.

5. Stick to the plan. Retirement vehicles are among the few investments where people stay

the course, improving long-term wealth outcomes.

6. Enjoy estate-planning benefits. Retirement funds are exempt from executor's fees and

offer streamlined estate transfer.

Count Me In

Instead of leaving retirement to chance, make the choice today to be part of the minority who

retires comfortably. With the right plan, guidance, and discipline, you can create a retirement that

supports not only yourself but your family too.

So the question is - when it comes to building your future, will you say: Count Me In?