Most South Africans are looking forward to a retirement that offers comfort, freedom and financial ease, but the reality for many is likely to be very different. This is according to the findings on the 2025 FNB Retirement Insights Survey, which reveals a widening gap between retirement expectations and actual preparedness – just 10% are planning to fully retire at 60.
Now in its third year, the 2025 FNB Retirement Insights Survey shows that although more South Africans claim to have a retirement plan, very few are on track to achieve their goals. The survey reveals that 60% of South Africans under the age of 60 now have a retirement plan. However, financial constraints continue to hinder progress, which may delay contributions, accessing savings prematurely, or abandoning retirement products altogether.
Among middle-income earners, for example, contributions towards retirement annuities have declined from 51% to 34% as debt pressures and daily living costs take precedence. The research further highlights a growing trend – the middle class feels uncertain about their ability to save adequately and stay on track with their retirement plans.
Lytania Johnson, CEO of FNB Personal Segment says, “the gap between expectations and outcomes must be urgently addressed. 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. That’s where financial institutions and retirement funding providers and intermediaries now have a more critical role to play than ever before.”
Sizwe Nxedlana, CEO of FNB Private Segment says, “what’s clear is that most people aren’t ignoring retirement, they are just overwhelmed by it. The survey found that procrastination often stems from not knowing where to start. We see that people don’t avoid planning because they don’t care; they avoid it because it feels too big, too far away or too confusing. That’s why we need to meet people where they are, with tools and advice that break things down and build momentum.”
Behavioural and emotional dynamics uncovered
Even people with a retirement plan often feel uneasy. There’s persistent anxiety about the rising cost of living, future health expenses and whether their money will last. While younger respondents tend to be optimistic, with many expecting to replace 75% or more of their income in retirement, the experiences of older adults tell a different story. Many over-60s are working longer than planned, cutting back on spending, or relying on their adult children for support. Some retired respondents spoke of losing their sense of purpose, feeling isolated or experiencing regret about not planning earlier.
Concerning gaps in estate planning
While 60% of respondents have funeral cover, only four out of every 10 have a signed Will. And a third of these haven’t even considered drafting one. The research showed that myths about Wills being only for the wealthy persist, especially among younger and lower-income individuals. Others avoid drawing up a Will due to time constraints or uncertainty about who should inherit their assets. Yet without a valid Will, families can be left vulnerable at the worst possible time.
“Funeral cover is almost universal in South Africa because people want to ease the immediate burden on family. But a Will does that too, and more. It’s not just for the wealthy. It’s about protecting your family in the long term,” says Nxedlana.
Two-Pot Retirement system
Survey responses highlighted that public awareness is relatively high with nearly 70% of respondents indicating they’ve heard of the new system, and almost half claimed to understand it. Encouragingly, less than a third of survey respondents have actually withdrawn from the savings portion of their newly structured retirement funds.
Nxedlana says, “the concern is that while the reform offers short-term relief, the savings pot could be seen as a default emergency fund rather than a tool for building future stability. However, there is some cause for cautious optimism, since 43% of those who haven’t withdrawn from their savings pot say they don’t plan to – which points to an understanding of keeping their retirement savings intact over time.”
The research also delivered evidence of a broader rethink around retirement itself. Over 50% of respondents expect to supplement their retirement income through part-time work or side hustles.
Nxedlana believes this evolution reflects a generational shift. People aren’t just looking for products; they’re looking for options, guidance and a greater sense of control. This is especially relevant given that the findings point to a shift in how and where people seek advice. Bank platforms now outrank social media and peer groups as the preferred channel for retirement guidance. Consumers are calling for lower fees, user-friendly tools, better education and incentives to reward consistency. “Our job as FNB is to provide the tools, insight and support to help them navigate this complex journey so that they are able to turn their intentions into results,” Nxedlana says.
“There’s no single fix for retirement,” concludes Johnson, “but there are bite-sized steps for everyone. At FNB, we’re focused on helping clients move from merely having a plan for retirement to having a good plan - and from feeling stuck and overwhelmed to taking action.”
