South Africa. Nearly half of SA’s workforce estimated to have no retirement plan – survey
About 41% of economically active South Africans are estimated not to have any retirement plan in place, according to a survey by 10X Investments.
It defines “economically active” people as those with a monthly income of more than R7 600.
The survey went out to over a million South Africans and, according to 10X, this serves as a representation of the 11.9 million economically active South Africans in the country.
The survey estimates that more than 40% of economically active women across all demographics have no investments or savings in any form.
About 46% of the 1.4 million respondents to the survey indicated a “profound” lack of trust in the retirement industry.
The report points out that SA is sitting on a retirement timebomb, with only 6% of the country’s population on track to retire comfortably, according to National Treasury.
“There is no evidence to suggest that the crisis in retirement planning in the country has improved at all in the last 20 years,” states the report.
The report found a lack of understanding among many existing clients of the retirement industry of what they have saved and what they need to have saved.
Fewer than 50% of the respondents were aware of how much money they could expect at retirement.
The survey found that 46% of respondents began planning for retirement only after becoming established with partners or having children, while just 22% began planning at the beginning of their careers, which is what is recommended.
Read more Fin 24