South Africa. Sweating pensions in the post-retirement phase
Only 6% of South Africans (about 3.4 million) are over the age of 65. On the other hand, in the United States 15% (46 million) are over the age of 65 and in the UK, 18% of the population (nearly 12 million) are over 65. Our political focus is quite rightly focussed on the needs of the youth.
In developed countries relentlessly aging populations have forced governments to change the political agenda away from an exclusive focus on youth to the needs, challenges, and aspirations of middle-aged and mature consumers.
Previous generations of retirees (who expected to live a mere 10 years after retiring) could safely convert their savings to cash and live off the interest when they retired. Today, the combination of higher inflation and a longer life span has ensured that for many, this strategy is inadequate. Increasingly there is a risk that savings will be depleted before death.
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