According to a recent survey conducted by Debt Rescue, it was found that 40% of individuals in South Africa fear retirement more than they fear death. The survey involved a sample of over 1,900 people ranging in age from 25 to 65 years. Debt Rescue, a debt review firm, discovered that the research highlights concerns and challenges related to retirement planning. The difficulties in saving for retirement can be attributed, in part, to the high cost of living, unemployment, and personal debt burdens.
Neil Roets, the CEO of Debt Rescue, emphasized that many South Africans face difficulties in meeting their daily expenses, let alone setting aside money for retirement savings. He stated, “The truth is that due to the continuous increases in the cost of living over the past few years, many South Africans are currently unable to save money and rely on credit just to get through each month.” He further explained that the main obstacles to saving for retirement are the exorbitant cost of living, followed by unemployment or unstable income, and high personal or household debt.
The survey conducted in 2023 revealed that the top priorities for respondents are ensuring income security (63%), reducing expenses (58%), and paying off debt (52%). In contrast, only 33% of respondents consider securing their investments as a priority, while 34% prioritize establishing an emergency savings fund.
Another alarming finding from the Debt Rescue Survey is that a significant 59% of participants admitted to being completely unprepared for retirement, lacking both savings and a retirement plan. Surprisingly, only 4% felt adequately prepared for retirement, despite 47% of South Africans identifying a comfortable retirement as their primary savings goal, according to a separate survey by Old Mutual. This suggests that a majority of South African adults may face the possibility of retiring later than expected, being unable to retire at all, or relying on their families for financial support during their retirement years.
Roets advised, “We understand that South Africans struggle to meet their daily expenses, let alone set aside money for retirement savings. I recommend consulting a financial adviser who can provide guidance on making smart investments, no matter how small, that can help your money grow.” He also emphasized the importance of having a sound financial management plan to gain better control over one’s finances. Cultivating a habit of saving for the future, even if it starts with small monthly contributions, can put individuals on the path to a comfortable retirement.
