Only 6 of South Africans are financially on track to retire with comfort, according to the latest Retirement Reality Report from 10X Investments, a financial service provider. The rest? Well, many may be working long past 65 - and not by choice.
The benchmark is simple, but sobering: to retire with a monthly income of R25 000 before tax, one needs to have saved around R7.5 million by age 63. Thats assuming a cautious 4 annual drawdown. Few are even close.
People start saving too late, or dont save enough, BusinessTech reports 10xs Andre Tuck as saying. Thats the shortfall in plain terms. The result? Millions heading for a future where working into their 70s - even 80s - is becoming the norm.
And, according to the publication, Sanlam Corporate CEO Kanyisa Mkhize agrees. People think theyll retire at 60. But our research shows many may need to keep working for another 20 years just to maintain their lifestyle, she said.
And the gap between retirement dreams and financial reality isnt just about savings - its about advice too. Sanlams latest benchmark study found nearly half of respondents rely on Google for financial guidance, while just 22 turn to financial advisors.