Retirement Readiness Depends on More Than Just Having a Plan

While South Africans are becoming more actively involved in retirement planning, the findings of the 2026 FNB Retirement Insights Survey show that having a plan in place does not necessarily translate into retirement readiness.

Now in its fourth year, the survey tracks how South Africans think about, prepare for and experience retirement. This year’s responses revealed that retirement readiness is increasingly shaped by how people access information, which products they use, how they manage debt and whether they can balance today’s financial pressures with tomorrow’s financial security.

Bheki Mkhize, CEO of FNB Wealth and Investments, says one of the clearest findings of this year’s results is that retirement readiness is built over time through a combination of financial decisions and products. “Many South Africans are already doing something about retirement. They may be contributing to a retirement fund, saving when they can, investing, building a business or planning to use an asset later in life. While these actions are important, there are still significant gaps in overall preparedness because a complete retirement strategy is rarely built around a single product or decision,” says Mkhize.

Concerningly, the 2026 survey shows that 24% of under-60s without a retirement plan say they do not know where to access savings and investment products, almost double the 13% recorded in 2025. A further 53% say they cannot afford to save because their disposable income is spent elsewhere, while 21% say they rely on assets they can sell at retirement instead of formal retirement products.

According to Mkhize, these findings highlight the need for simpler pathways into retirement planning. “The strongest retirement strategies balance growth with access, flexibility with discipline, and today’s pressing needs with tomorrow’s long-term security. Retirement annuities, pension and provident funds, preservation products, tax-free savings, emergency savings, insurance and estate planning can all play different roles, but it is vital that they are combined in a way that delivers the desired retirement outcome.”

Samukelo Zwane, Product Head at FNB Wealth and Investments, says the 2026 findings also show that technology is changing how people access financial information. “AI is becoming an important entry point for many consumers who want financial information that is easy to access, simple to understand and available without judgement. For people who feel out of their depth in financial conversations, AI can make it easier to ask questions, build knowledge and explore options,” says Zwane.

The survey found that AI is acting as a financial activation tool, particularly among younger and lower-income consumers. Lower-income consumers who use AI consult more sources of financial advice overall and are more likely to hold investment products such as unit trusts and tax-free savings accounts. The findings also show a strong relationship between AI use and formal retirement planning, with lower-income consumers who use AI significantly more likely to have a retirement plan.

However, Zwane says AI should not be viewed as a replacement for advice. “AI can help close the information gap, but it does not fully close the gap between understanding options and making the right decision. Consumers still need trusted human advice to validate information, contextualise it and turn it into a plan that fits their income, goals, responsibilities and life stage. AI creates access, while the adviser helps create the plan.”

Continued use of the two-pot retirement system is another major theme in the 2026 research findings. The survey found that 49% of under-60s with retirement products have made a two-pot withdrawal since the system was introduced. The main reasons for withdrawing were immediate financial needs, with 46% of those who made withdrawals doing so to cover day-to-day expenses, 36% to purchase appliances and 35% to pay off debt.

Mkhize says this highlights the tension many households face between present budgetary pressures and future financial wellbeing. “The two-pot system gives people a choice, and the findings show that many are choosing now over later. That is understandable in a difficult financial environment, but it also reinforces why retirement planning cannot be separated from broader financial wellbeing. Debt, emergencies and everyday expenses all affect the ability to preserve retirement savings.”

Zwane says the findings should encourage consumers to take practical, informed steps now. “Retirement planning should not feel like a once-off exercise that happens only when retirement is near. It should be an ongoing conversation that evolves as life changes. The earlier people understand their options and get the right guidance, the better their chances of building a retirement plan that can withstand the pressures of real life.”