Half of South African pensioners will work beyond retirement age

A survey by FNB reveals that half of South African pensioners will need to work beyond the retirement age of 60.

Moreover, this 50% of South African pensioners acknowledge they are insufficiently prepared for retirement. And they see life beyond 60 merely as a ‘transition phase’ while they continue to work. This is according to the 2024 FNB Retirement Insights Survey, which conducted quantitative and face-to-face interviews of 1 072 respondents, reports Business Tech.

HALF OF SOUTH AFRICAN PENSIONERS WILL WORK AFTER 60

Results from the FNB survey show that half of South Africans pensioners are insufficiently prepared for retirement. This is blamed on lack of financial literacy, an inability to save and generally high economic pressure of living in South Africa. As a result, 50% of respondents have no intention of retiring at the national retirement age of 60.

“This year’s study validates the ongoing financial and knowledge barriers that South Africans face. However, the responses also show a greater awareness of the importance of education in overcoming those challenges. Despite a landscape fraught with economic instability and rising living costs, there is a growing awareness of the need for more accessible retirement planning,” said Lytania Johnson, CEO of FNB Personal Segment.

RETIREMENT OUTCOMES

The FNB survey highlighted that retirement outcomes are highly dependent on the individual’s income group. It stands to reason that higher-income individuals generally report better preparedness for retirement. However, the vast majority of South Africans struggle with savings and investment due to the tough current economic conditions. As a result, there is a large gap between retirement expectations and reality. Half of South African pensioners will have to work past retirement age to maintain their living standards due to inadequate savings.

Furthermore, the FNB survey revealed that roughly 75% of ‘pre-retiree’ respondents do have existing retirement plans. And are on course for at least a ‘good’ retirement. However, 25% of these pre-retirees believe they will need to continue working after 60 to maintain this, whether it be full or part time. As a result, retirement is increasingly being seen as a transition phase rather than a complete withdrawal from the workforce.

Notably, 38% of current survey respondents over the age of 60 say they are still working full-time. While 30% said that they are earning a secondary or passive income from the South African Social Security Agency and the like. Despite being retired, 7% are actively engaged in part-time work.