Retirement: Can South Africans still afford to retire?

Retirement looks different today than it did a decade ago. More South Africans realise that they need to plan more carefully, but just as many still wonder whether those plans will deliver the future they expect.

Rising living costs, family responsibilities and economic uncertainty continue to test even disciplined savers. Yet recent research suggests that better habits and earlier planning can improve the odds of financial security.

The latest 2026 retirement research shows encouraging progress. More people under 60 now say they have a plan, and conversations about long-term savings have become more common.

However, many still question whether they save enough or have chosen the right financial products. In fact, that gap between planning and confidence remains one of South Africa’s biggest financial challenges.

WHY DOES RETIREMENT STILL FEEL OUT OF REACH?

South Africa faces a difficult savings environment.

Inflation has eased from its recent highs, but household budgets remain under pressure because food, electricity and transport costs consume a large share of income.

Many families also support adult children, grandchildren or elderly relatives, leaving less money for long-term savings.

Research also highlights the impact of the two-pot retirement system.

While awareness has grown, many withdrawals fund immediate expenses, debt repayments and household purchases. That helps families survive today, but it also reduces the money available in later years.

The findings reveal another trend: Artificial intelligence has become a popular source of financial information because it provides quick answers.

However, information alone cannot replace personal advice. Financial decisions still depend on income, family commitments and long-term goals.

WHEN SHOULD YOU START PLANNING FOR RETIREMENT?

The simple answer is as early as possible.

Starting in your twenties or thirties allows compound growth to work over decades. Even small monthly contributions can build significant savings over time because investment returns accumulate year after year.

The research also found that people with structured and diversified financial arrangements generally feel more prepared.

Those already in retirement often report better outcomes when they have combined different savings and investment products throughout their working lives.

Financial planners also encourage regular reviews.

Income changes, family circumstances shift, and legislation evolves. Reviewing a plan every year helps people stay on track instead of reacting during a financial crisis.

WHAT MISTAKES SHOULD SOUTH AFRICANS AVOID?

Waiting too long remains the biggest risk.

Many people postpone saving because everyday expenses seem more urgent. However, catching up later usually requires much larger contributions.

Another common mistake involves relying on a single source of income after leaving work. Diversified savings, emergency funds and realistic spending plans provide greater flexibility when markets or personal circumstances change.

No plan removes every financial challenge.

Yet the latest findings show that consistent saving, informed decisions and trusted advice improve the chances of enjoying financial independence.

For many South Africans, a comfortable future remains possible, but it depends on choices made long before the final working day.

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