Section 3
Retirement Risks
What are the blind spots?
Retirement back-up plans are becoming more fragmented
Base: Respondents who say their retirement money may run out (n varies by year)
Most retirees are not planning for cognitive decline
People are projecting today’s health into an uncertain future
The longevity gap problem
At a median savings of R1.6m, the typical retiree faces a ~48% funding shortfall against a 25-year retirement horizon. And this estimate excludes inflation, healthcare escalation, and longevity risk beyond age 85.
Why the gap persists
People are not ignoring longevity risk anymore, but they may delay acting on it.
INSIGHTS
The quiet transfer of retirement risk
- Family remains the primary fallback but is increasingly under strain.
- Government and community support are filling gaps left by shrinking family networks.
- A clear tension exists between legacy goals and financial survival.
- Planning gaps persist, leaving a meaningful at-risk segment.
- While people expect to live longer, fewer feel they are ageing in good health, suggesting later life may bring more health challenges than expected.
- Many retirees may have a significant funding gap if they live as long as they expect.