Section 3
Contextual Confidence
How circumstances dictate confidence levels
The economic and political environment weighs on retirement savers
Many are electing retirement options backed by bonds, with no inflation protection
But how do they secure a diversified balance of guarantees, inflation protection and growth?
View the detailed responses below.
Optimistic expectations about health
Respondents tend to project their current sense of good health into the future, particularly mental health, and only three in ten respondents have thought extensively about planning for cognitive decline due to Alzheimer’s or Dementia.
Estimating own life expectancy
There was a wide distribution of estimates when predicting longevity. On average respondents think that they will live to approximately age 85, which is in line with current longevity statistics. However, looking at the longevity estimates of different age bands in the study, it is evident that individuals don’t accurately estimate their own life expectancies.
Increase in stating reliance on government for support
Approximately three-quarters of the population reach retirement age without a funded pension benefit, and hence rely on a government social assistance.
Retirees under strain from inflation
Inflation is enemy of your savings because you always need to take it away from any growth to find out the real rate of return.
How important is it for your retirement income to keep up with inflation each year? (Those who said very important and extremely important)
Because inflation impacts retirement
History shows that SA inflation has been below 5% for only 10 calendar years over the last 33 years.
