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Section 2

Lack Confidence & Seek Security

Big drop in confidence that savings will cover expenses in retirement
Only 40% are content that they have enough to last for their retirement timeline

 

 

Drop in confidence that savings will cover monthly expenses in retirement

3 in 5 are not confident  
3 in 5 are not confident their savings will last  
possible covid effect  
   
2020  
14%
Really confident
Arrow down
26%
Confident
Arrow down
2,88%
Mean score
Arrow down

2020 n=307

 
2019  
20%
Really confident
 
32%
Confident
 
3,44%
Mean score
 
2019 n=524  

Please rate your level of confidence that your income (money) will cover your monthly expenses in retirement if you reach the age of 100, allowing for inflation.
Mean Score: Really confident = 5, Confident = 4, Not sure = 3, Not confident = 2 & Really not confident = 1

 

 

Confidence has taken a knock, especially for those in transition

Confidence has taken a knock, especially for those in transition

Please rate your level of confidence that your income (money) will cover your monthly expenses in retirement if you reach the age of 100, allowing for inflation. Mean Score: Really confident = 5, Confident = 4, Not sure = 3, Not confident = 2 & Really not confident = 1

Total n=307

 

And overall are less likely to rely on government or others to support them

And overall are less likely to rely on government or others to support them

 

Multiple response n=307


If your retirement money is enough for now, but may run out in the future, who will you rely on to provide support?

 

 

Increased desire for income security, possibly heightened by uncertainty

  • Research also reveals more people impacted by and concerned about poor recent investment market returns
  • Important across all demographic groups that retirement income must continue for as long as they live


 

Preference for known & reliable income
Higher in times of uncertainty

2020  
70%
Strongly agree
Arrow up
16%
Somewhat agree
possible covid effect
4,46%
Mean score
arrow up

2020 n=307

 
2019  
60%
Strongly agree
 
21%
Somewhat agree
 
4,30%
Mean score
 

2019 n=524

 
2018  
58%
Strongly agree
 
21%
Somewhat agree
 
4,22%
Mean score
 

2018 n=345

 

 



Strong preference for income security and certainty

88% want to know exactly how much money they will get each month/year
  • Significantly higher among those with lower household incomes (less than R30k per month)
  • The more financially stable (those who did not have to dip into their retirement savings), the more likely to want to know how much they will get each month/year in retirement

n=307

Which statement do you prefer? Knowing exactly how much money I will get each month/year or not knowing exactly how much I will get each month/year, but knowing it could be more (or it could be less, depending on market conditions) than the previous month/year)



 

More importance placed on ability to guarantee income in retirement

  • Significant increase from 2019 in importance of paying off credit card debts and/or mortgages
  • Growing importance to support the financial needs of their partners


 

Importance of retirement fund money

Importance of retirement fund money

 

Those expressing extremely and very important indicated above     Total n=307

Please rate the importance of each of the following in terms of how you will use the money you will get from your retirement savings when you retire?(1 – Not important; 2 – Slightly important; 3 – Moderately important, 4 – Very important; 5 – Extremely Important)

 

 

Retirement money should (at least) last as long as they do

  • And flexibility is more important than before


 

Importance of retirement fund money

Statements 2020 2019 2018
My retirement income must continue for as long as I live 1 1 1
I must have flexibilityin deciding how much income to draw each year 2 5 4
My retirement income must keep up with inflation every year 3 4 3
My retirement income must not be affected by what happens in investment markets 4 3 5
My retirement income must cover frail care and medical bills 5 2 6
My retirement income must continue to meet my family’s needs after I pass away 6 6 2
I am happy for my retirement income to be higher when investment markets are strong and lower when they are weak 7 7 7
 

n=307

n=524

n=345

 

I am going to read you various preferences with regards to your retirement income. Please tell me how important each of these are to you? (Mean scores where 5 is Extremely Important, 1 is Not at all Important)

 

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