More South Africans Are Planning for Retirement

More South Africans are taking retirement planning seriously, but many remain uncertain about whether their plans will be enough to withstand the realities of rising living costs, debt, healthcare expenses and family responsibilities.

That is one of the key findings of the 2026 FNB Retirement Insights Survey, now in its fourth year, which provides a comprehensive view of how South Africans across income segments think about, prepare for and experience retirement. The study combines qualitative and quantitative research among adults aged 18 and older, examining the views of consumers under 60, those over 60 and retirees.

The findings point to a significant shift in retirement behaviour among South Africans, with more consumers taking active steps to plan for their financial futures despite ongoing economic pressures. The strongest gains were observed among lower-income earners and those in their peak earning years, suggesting growing awareness of the importance of long-term financial planning.

Lytania Johnson, CEO of FNB, says the 2026 findings point to a meaningful shift in attitudes towards retirement planning and the actions people are taking to prepare for it.

“The increase in retirement plan ownership gives us confidence that the retirement conversation is gaining ground. It is particularly encouraging to see stronger planning behaviour among lower-income consumers, where the number of respondents with a retirement plan has risen significantly. While these findings reflect positive progress, they also remind us that planning for retirement is not only about saving more, but about understanding whether those savings will be sufficient to support the lifestyle and needs people expect in retirement.”

However, Johnson cautions that increased intention is not the same as retirement readiness. “Many South Africans want to save, but the path to retirement still feels unclear. The survey shows growing intent, but people need simpler, more accessible guidance to turn good intentions into action. As an industry, we have a responsibility to help South Africans understand where to start, what to prioritise and how to make retirement planning part of their everyday financial lives.”

The survey highlights this gap between intent and action. Of the respondents under 60 who do not have a retirement plan, 53% say they cannot afford to save because their disposable income is spent elsewhere. A further 24% say they do not know where to access savings and investment products, almost double the 13% recorded in 2025. For many, unexpected emergencies, the rising cost of living and day-to-day expenses continue to crowd out long-term planning.

Retiree experiences highlight why planning alone is not enough

While the findings among under-60s point to encouraging improvements in retirement planning behaviour, the experiences of current retirees provide an important reality check. They reveal the financial pressures that can emerge in retirement and underscore the importance of preparing not only for retirement itself, but for the uncertainties that may arise along the way.

For many retired South Africans, retirement is costing much more than expected. 74% of Personal segment retirees say the cost of living has been higher than anticipated, while 46% say healthcare costs are significantly more than they had planned for. Housing costs, emergency expenses and ongoing family responsibilities are also creating financial pressure, with 51% of over-60s in the FNB Personal Banking segment and 47% in the FNB Private Banking segment saying they have been surprised by the unforeseen financial implications of family commitments.

Sizwe Nxedlana, CEO of FNB Private Banking and Wealth Management, says the 2026 FNB Retirement Insights Survey findings show that retirement planning needs to be built around real life, rather than an idealised vision of retirement. “Retirement is often imagined as a time of independence, freedom and fewer obligations, but the survey findings show that the reality of retirement is often more complicated. Rising food prices, medical aid, insurance, family support and unexpected costs can reshape even a carefully considered retirement plan.”

Nxedlana says a sound retirement strategy should look beyond investment growth. “It needs to consider liquidity, future healthcare expenses, estate planning, family support, tax efficiency and the possibility that retirement may include continued work, business interests or phased income. True financial freedom in retirement is not just the absence of work; it is the ability to absorb change without losing control of the life you have planned.”

The findings reinforce this view and demonstrate the importance of structured retirement planning. Respondents who hold capital preservation products, including retirement annuities and fixed deposits, are six times more likely to have a retirement plan than those without such products. Over-60s without long-term retirement vehicles are also two to three times more likely to experience worse-than-expected retirement outcomes.

Johnson highlights the clear opportunity that the survey findings present for financial institutions to support better retirement outcomes for all South Africans.

“Successful retirement starts with an individual taking the first planning step, but it is sustained through guidance, appropriate products and advice that meets people where they are. The financial services industry has both the responsibility and the opportunity to provide these essentials so that more South Africans can achieve the retirement they desire and deserve.”