As South Africans envision their retirement, many dream of a life filled with comfort, freedom, and financial security. However, the 2025 FNB Retirement Insights Survey reveals a stark contrast between these aspirations and the reality facing most.
Now in its third year, the survey is based on responses from 1 041 participants gathered between 15 January and 8 February 2025. This quantitative research was supplemented by in-depth discussions with focus groups consisting of three to five respondents.
The disconnect between what South Africans anticipate for their retirement and the actual experiences of retirees is driven by unrealistic assumptions about financial security, lifestyle maintenance, and the ability to work indefinitely, contrasted with the harsh realities of financial constraints, unexpected life events, and inadequate planning.
The survey found that many under-60s with a retirement plan hold optimistic views about their retirement, expecting to maintain their current standard of living and achieve financial freedom.
The survey indicates that 60% of South Africans under 60 have a retirement plan, reflecting increased awareness and interest in retirement planning across all income segments. However, financial constraints, such as rising living costs and debt pressures, continue to hinder progress. Among middle-income earners, contributions to retirement annuities have dropped significantly, from 51% to 34%, as immediate financial demands take precedence.
Lytania Johnson, the chief executive of FNB Personal Segment, said: “There is growing positive momentum in our industry, and a visible shift from a ‘one day’ to a ‘day one’ mindset. We are seeing more South Africans recognising the need to plan and taking initial steps – but awareness without action won’t secure the futures that people want.”
Sizwe Nxedlana, the chief executive of FNB Private Segment, said procrastination often stems from the overwhelming nature of retirement planning: “People don’t avoid planning because they don’t care; they avoid it because it feels too big, too far away, or too confusing.”
Working past retirement age
A significant finding from the survey is the increasing expectation of working beyond traditional retirement age.
Nearly 90% of under-60s expect to continue working in some capacity, with 28% planning to work full-time, 25% part-time, and 40% pursuing side hustles or other enterprises. Only 10% plan to retire fully.
There is an increase from 2024, with 14% (up from 10%) expecting to earn more than their current income in retirement, particularly among younger respondents who are optimistic about replacing 75% or more of their income in retirement.
These expectations are often based on respondents’ assumptions that they can work indefinitely, start businesses, or significantly reduce their living expenses, which the survey indicates are frequently unrealistic.
The experiences of respondents aged over 60 years are in stark contrast to younger respondents’ expectations, highlighting the challenges that undermine anticipated retirement outcomes.
Retirees often find that their savings are insufficient to cover living expenses. Escalating costs, including housing and debt burdens, misalign income and expenses, forcing many to continue working.
The trend of working past 60 is prevalent, particularly among higher-income segments (respondents earning R40 000 a month or more), driven by necessity rather than choice.
Retirees face unforeseen challenges such as divorce, loss of a partner, or caregiving responsibilities for grandchildren, which disrupt anticipated free time and financial plans.
Retirement brings a loss of purpose and daily routine. Feelings of isolation and regret over inadequate planning are common, particularly among those who did not save enough or start saving early.
What under-60s often overlook
The survey identifies several specific areas where expectations diverge from reality.
Under-60s often overestimate their ability to save adequately, with only 39% regularly saving for retirement (down from 45% in 2024). Over-60s report that unexpected costs and economic uncertainty erode savings, with many wishing they had paid more attention to policies, listened to advisers, or reviewed their plans regularly. For instance, 25% of over-60s do not feel on track for a comfortable retirement, citing insufficient savings and ongoing debt.
Under-60s envision a retirement of “overall wellness” encompassing financial, physical, and mental health, including travel and interesting experiences. However, over-60s often face health issues, caregiving responsibilities, or financial strain that limit these aspirations, leading to a reality far from the “care-free” retirement imagined.
Many under-60s lack clarity on how much they need to save or how to build a robust strategy, with 38% without a retirement plan citing financial constraints and lack of product knowledge. Over-60s reflect that earlier planning, better financial acumen, and disciplined saving could have closed this gap.
Advice approaches
The survey highlights that the enormity of retirement planning often creates a “defeatist” or “apathetic” mindset, trapping clients in short-term thinking or resignation because of constant setbacks and uncertainty.
To make planning feel achievable, the survey suggests that advisers can implement the following approaches:
- Challenge false confidence
Many under-60s exhibit overconfidence in inadequate retirement plans, failing to account for future challenges such as healthcare costs, inflation, or longevity. The survey notes that even those with plans may not have realistic strategies, leading to potential shortfalls.
Advisers can use interactive “what-if” scenarios to demonstrate the long-term impact of today’s decisions, making the future tangible. This can show clients the consequences of inaction or the benefits of small changes.
Advisers should use gap analysis tools and income modelling to test clients’ assumptions and highlight gaps early. For example, showing the impact of delaying saving by two years or not increasing contributions can ground planning in reality. Annual reviews are critical to adjust plans for changing economic conditions or life events.
- Small, actionable steps
The complexity of retirement planning creates inertia, particularly for mid-career clients who feel behind and unsure how to catch up.
Advisers should break planning into smaller, achievable goals, such as focusing on one objective per quarter (for example, contribution levels, investment reviews, debt reduction). This approach, termed “micro planning”, increases motivation and follow-through by making progress feel attainable.
Encourage clients to start with simple actions, such as increasing contributions by 1%, reviewing a policy, or listing expenses accurately. These small wins create momentum and reduce the perception that planning requires perfection.
- Behavioural nudges
Clients often struggle with follow-through because of competing financial pressures or lack of discipline, particularly those approaching retirement.
Advisers can foster consistent action by embedding savings nudges into everyday banking, such as SMS reminders tied to payday or alerts prompting contributions. Regular, empathetic check-ins and translating complex concepts into simple steps can build trust and sustain engagement.
- Planning for non-financial challenges
Retirement involves social and emotional challenges, such as loss of purpose or caregiving responsibilities, which under-60s often overlook.
Advisers should address these by discussing lifestyle goals alongside financial ones, preparing clients for unexpected events such as health issues or family obligations. This includes planning for alternative income streams, such as side hustles or small businesses, which 40% of under-60s anticipate pursuing.
Click here to download the 2025 FNB Retirement Insights Survey.
