More South Africans say they have a retirement plan, but First National Bank’s latest retirement survey suggests many remain uncertain whether those plans will be enough to withstand the financial realities of retirement.
The 2026 FNB Retirement Insights Survey shows a sharp increase in retirement plan ownership among people under 60, particularly lower-income consumers and those in their peak earning years. But the experiences of current retirees point to a tougher reality: retirement is often more expensive than expected, with living costs, healthcare expenses, debt, and family responsibilities placing pressure on retirement income.
FNB describes the survey as a study of how South Africans think about, prepare for and experience retirement. It says the research combines qualitative and quantitative findings from adults aged 18 and older, covering under-60s, over-60s, and retirees. The public report does not provide detailed information on sample size, fieldwork dates, weighting, or margin of error.
The survey found that 73% of respondents under 60 now have a retirement plan, up from 60% in 2025. Among lower-income consumers, retirement plan ownership increased from 19% to 48%, while planning among those aged 36 to 54 rose from 67% to 85%.
Under-60s are also putting more of their disposable income towards retirement savings, with the proportion rising from 7% in 2024 to 10% in 2026. This rise is being driven largely by lower-income consumers.
“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,” said Lytania Johnson, the chief executive of FNB.
But Johnson cautioned that having a plan did not necessarily mean people were ready for retirement.
“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.”
Among under-60s without a retirement plan, 53% (down from 61% in 2025) said they could not afford to save because their disposable income was being spent elsewhere. A further 24% said they did not know where to access retirement savings and investment products, almost double the 13% recorded in 2025. And 21% said they intend to rely on assets they can sell at retirement instead of formal retirement products.
The survey also points to broader financial-confidence gaps. Among under-60s, 41% said they wished they understood financial matters better, while 26% said they felt out of their depth. Many respondents said unexpected emergencies, the rising cost of living, and day-to-day expenses continued to crowd out long-term saving.
Debt is adding to the pressure. Among lower-income under-60s, the share of disposable income going towards debt servicing rose from 5% in 2024 to 8% in 2026. The survey also found that 57% of lower-income consumers said paying off debt before retirement was important for retirement readiness.
For older South Africans, debt is not only a pre-retirement risk. Among lower- to middle-income over-60s, 27% said they were surprised to still have debt at their age. The report says over-60s would be more likely to prioritise paying off debt if they received additional income, and many respondents link being debt-free with the ability to retire comfortably.
The two-pot retirement system also reflects the short-term financial pressure facing households. According to the survey, 49% of under-60s with retirement products had made a two-pot withdrawal since the system was introduced. The main reasons were to cover day-to-day expenses, buy appliances, and pay down debt.
FNB says this shows the system is being used mainly as a short-term lifeline rather than a long-term retirement strategy. Although withdrawals may help households deal with immediate pressure, they can weaken long-term retirement outcomes if savings are not rebuilt.
Retirement can be costlier than expected
The findings from current retirees show why FNB distinguishes between having a plan and being ready. Among Personal segment retirees, 74% said the cost of living in retirement had been higher than expected. Across retirees surveyed, 46% said healthcare costs had been higher than expected, while housing costs and emergency expenses were also significant surprises.
Family commitments are another major retirement pressure. The survey found that 51% of over-60s in FNB’s Personal Banking segment and 47% in its Private Banking segment had been surprised by the financial implications of continuing family responsibilities. These included supporting adult children, grandchildren, and, in some cases, elderly parents.
Sizwe Nxedlana, the chief executive of FNB Private Banking and Wealth Management, said retirement planning needed to reflect the realities people were likely to face after leaving the workforce.
“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.”
He said retirement planning should extend beyond investment performance.
“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.”
Retirement is changing
The survey suggests retirement is increasingly no longer a clean break from work.
Among under-60s without a formal retirement plan, 40% said they intended to rely on a side business or other income-generating activity to support themselves financially in retirement. The same proportion of under-60s with a plan included additional business income as part of their retirement strategy. For over-60s, FNB says running a small business, doing part-time work, or generating additional income is already a lived reality.
AI is changing how people seek financial guidance
The survey also identifies artificial intelligence as a growing source of financial information, particularly among younger and lower-income consumers.
It says AI can provide accessible, non-judgemental explanations of financial concepts, helping people ask questions they may feel uncomfortable raising elsewhere.
Among lower-income consumers, AI users consulted an average of 6.4 sources of financial advice, compared with 2.8 among non-users.
However, the report cautions that access to information is not the same as taking action. It says AI may help narrow the information gap, but consumers still need trusted advice to interpret financial options in the context of their income, debt, family obligations, and long-term retirement goals.
A broader approach to retirement planning
Product choice also appears to play an important role in retirement outcomes.
Respondents with capital-preservation products, including retirement annuities and fixed deposits, were six times more likely to report having a retirement plan than those without these products. Over-60s without long-term retirement vehicles were two to three times more likely to report worse-than-expected retirement outcomes.
The survey argues that retirement readiness is built through a combination of financial tools rather than a single product. These may include retirement funds, RAs, tax-free savings accounts, preservation products, investments, emergency savings, and appropriate risk protection.
Retirement outcomes also differ sharply by income level. Higher-income retirees are more likely to have diversified assets, multiple income streams, and flexibility to absorb shocks, while lower-income retirees face greater pressure from grants, continued work, and difficult spending trade-offs. Overall, 36% of retirees said retirement was going worse than expected, rising to 44% among lower-income retirees.
The survey’s overall message is that South Africans are making progress in retirement planning, but plan ownership alone is not enough. Affordability constraints, debt, limited financial confidence, short-term withdrawals, family responsibilities, and higher-than-expected living costs continue to test retirement readiness.
The challenge is no longer only whether South Africans have started planning for retirement, but whether their plan is resilient enough to withstand the costs and obligations that retirement may bring.
Click here to download the 2026 FNB Retirement Insights Survey.
