Kaya 959 Reporter
Just SA, a financial services firm, has released its retirement poll for 2022, revealing that an increasing percentage of South Africans are unsure whether they can afford to retire at all.
The findings were based on a survey of respondents conducted in March 2022, which took into account the country’s demographic and race samples.
South Africans over 50 feel insecure about their retirement funds, with only two out of five believing their salary will cover monthly needs if they live to 100.
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Kaya Biz with Guguletthu Mfuphi spoke to Bjorń Ludwick who is the Head of Distribution for Just SA about how many people can afford to retire in South Africa.
LISTEN TO THE FULL CONVERSATION HERE:
Ludwick says over 90% of retirees are unable to sustain their quality of life prior to retirement, and two-thirds of members have less than R50,000 in their retirement savings.
“There is a big problem we are facing, and we are here to raise awareness, and the study helps us track that. Other studies show that less than 5% of people can actually afford to retire,” says Ludwick
When South Africans were asked how they planned to get through retirement, they gave the following answers, according to the poll:
- 57% of respondents plan to rely on children/grandchildren;
- 42% expect to rely on siblings or other family members;
- 27% plan to rely on the government;
- 14% plan to rely on friends;
- 10% don’t have a plan;
- 9% think their retirement funds will be enough.
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