South Africa's retirement planning landscape is evolving, but challenges persist. A recent survey reveals a growing awareness among South Africans about the importance of securing their financial futures, particularly among lower-income earners and those in their peak earning years. However, the journey from intention to action is fraught with obstacles, and many retirees find themselves facing unexpected financial pressures.
A Shift in Attitude, But Not Yet in Action
The 2026 FNB Retirement Insights Survey highlights a meaningful shift in retirement behavior. More South Africans are actively taking steps to secure their financial futures, despite persistent economic pressures. This is particularly encouraging among lower-income consumers, where the number of respondents with a retirement plan has risen significantly. However, this increased awareness has not yet translated into widespread retirement readiness.
Lytania Johnson, CEO of FNB, emphasizes that while more South Africans want to save for retirement, many still struggle to navigate the process. The survey shows growing intent, but people need simpler, more accessible guidance to turn good intentions into action. The gap between intention and action is significant, with over half of respondents under 60 who do not have a retirement plan citing affordability as a barrier.
Navigating the Path to Retirement
The survey reveals that many South Africans want to save, but the path to retirement still feels unclear. Over a quarter of respondents do not know where to access savings and investment products, a figure that has doubled since 2025. Financial emergencies, rising living costs, and everyday expenses continue to crowd out long-term financial planning, making it difficult for many households to prioritize retirement savings.
The Reality of Retirement Expenses
While younger South Africans are making progress in planning for retirement, the experiences of existing retirees offer a stark reminder that saving alone is not enough. Many retirees face expenses that are substantially higher than expected, with healthcare costs exceeding original estimates by nearly half. Housing expenses, emergency costs, and ongoing family obligations also place significant strain on retirement finances, with over half of over-60s experiencing financial surprises due to family commitments.
Sizwe Nxedlana, CEO of FNB Private Banking and Wealth Management, underscores the need for retirement planning to reflect the realities of modern life. Rising food prices, medical aid, insurance, and unexpected costs can reshape even a carefully considered retirement plan, he says.
The Value of Structured Planning
The research underscores the value of structured retirement planning and long-term savings vehicles. Respondents who hold capital preservation products, such as retirement annuities and fixed deposits, are six times more likely to have a retirement plan. People over 60 without long-term retirement vehicles are twice to three times more likely to experience retirement outcomes that are worse than expected.
Johnson emphasizes the opportunity for the financial services industry to improve retirement outcomes across South Africa. Successful retirement starts with an individual taking the first planning step, but it is sustained through guidance, appropriate products, and advice that meets people where they are. The industry has a responsibility and opportunity to provide these essentials so that more South Africans can achieve the retirement they desire and deserve.
