E South Africa Could Face Hardship In 20-30 Years Due To Low Retirement Preparedness

Recently there have been important changes in the rates of retirement in South Africa. People are constantly asking questions of how much it will be enough to save to live satisfactorily after they reach the age of receiving a pension. Most South Africans usually try to save enough money to maintain the standard of living they are used to for the rest of their life. But considering this fact that everybody wants to live happily and carefree while they get old, recent news can sound a little confusing.

According to the data of the National Treasury, more than half of South Africans don’t have any kind of certain plans when it comes to their retirement. Specifically, 49% of them have not planned anything for their retirement and as statistics suggest, the women are far less prepared than men. In fact, 53% of South African women don’t have plans for retirement, which makes the situation even more dramatic. But the news isn’t surprising because last year’s statistics showed even lesser numbers, as only 6% of the country’s population had certain plans to retire comfortably in 2019. 

The annual Retirement Reality Report has been released by the 10X Investments on Wednesday and the experts believed that the situation would somehow change as a result of the coronavirus pandemic, which made it clear that it’s necessary to tackle the retirement savings during the crisis. However, the situation is different and even the look of how poverty looks like during the pandemic couldn’t convince South Africans to stop ignoring their future and start planning for retirement. 

Investment culture in SA

Experts are still trying to find out the possible reasons for having this kind of retirement planning rates in South Africa. The new report is based on the Brant Atlas Survey of 2020 which provides up-to-date information gathered using online surveys about the lifestyle of economically active South Africans who live in households and have a monthly income of more than R8000. Last year the number of people who reported that they don’t have a retirement plan was slightly less than this year, but the difference of 3% is not quite significant for making thorough decisions. 

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