Most not set up to retire
Two out of every three South Africans have no retirement plan and the number who are confident they have a well-executed plan has declined from 7% to 6% over the past year.
The latest Retirement Reality report by financial services provider 10X Investments surveys the South Africans who should be saving for retirement and suggests the retirement crisis has worsened.
“There has been an increase in the number of people who say they don’t have a retirement plan and a decrease in the number of people who feel good about their retirement plan,” 10X Investments CEO Steven Nathan said.
The report by 10X, in collaboration with Brand Atlas, is based on online surveys among 10,780 economically active South Africans with a monthly income in excess of R7,600.
More than two thirds, 67% of respondents, indicated they had no retirement plan, or just a vague idea of one – a five percentage point rise from 2018.
About 55% of those said they did not have enough money to save.
Women are flagged as being more vulnerable when it comes to retirement savings – the report found 72% of women did not have a retirement plan or only a vague plan, compared with 63% of men.
“A large number of people believe they can set themselves up for a decent retirement in a short period of time, 24 years or less, therefore leaving it until too late,” Nathan said.- BusinessLIVE