Half of retirees plan to keep working to boost income, survey finds

If you were to retire tomorrow, would you have enough money to afford the lifestyle you're currently living?

How long would your retirement savings carry you?

As we begin July, which is Savings Month, let's reflect on our retirement plans.

A recent 2025 FNB Retirement Insights Survey has shown that while many South Africans look forward to retiring comfortably, the reality is different. Only 10% of the 1,041 respondents said they were planning to fully retire at 60, the survey found.

The rest? According to FNB, 50% of the respondents, aged between 18 and over 60, are planning to continue working beyond retirement age. That is more than 500 people.

Pause and think about this for a moment.

Do you know how much you would need to be able to retire comfortably?

Are you on track with your retirement plan?

If not, where does that place you and what does it mean?

Could you find yourself working beyond retirement age just like the more than 500 respondents?

“The number of fully retired people over 60 is decreasing over time as many are continuing to work in order to supplement their income. Mandated retirement is a reality that many are not adequately prepared for,” reads the report in part.

CEO of FNB private segment Sizwe Nxedlana says while some retirees continue working by choice, most are doing it out of necessity.

“Others are drawing on retirement savings earlier than expected, dealing with unexpected expenses, or supporting extended family. All of this erodes the financial freedom they anticipated and fundamentally changes the reality of retirement for them,” writes Nxedlana in the report.

“With this gap between expectations and reality in mind, if we want to meaningfully support South Africans on the path to financial freedom, we need to reframe the conversations around retirement as well as the way people plan for it.

“Retirement planning needs to become less about an idealised end state and more about building flexibility, resilience and realism into long-term financial strategies. That means educating consumers not only on how to save, but on how to adjust and adapt to life events, economic conditions and shifting family roles.”

Nxedlana says what was clear is that people are not ignoring retirement, however, they find it overwhelming.

“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,” he says.

CEO of FNB personal segment Lytania Johnson 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.”

The survey further shows that though more South Africans claim to have a retirement plan in place, “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.”

Less than a third of respondents said they had withdrawn from the two-pot retirement system.

“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,” says Nxedlana.

The survey noted that there was importance in the increased awareness on the importance of having a retirement plan.

"[It] shows the importance of acting now and not someday in the future. However, merely having a plan isn’t necessarily enough. What matters is the quality of that plan – how well it’s built, whether it’s realistic and whether it’s fit for the individual’s financial and lifestyle goals.

“This is where retirement advisers and product providers play a crucial role, not just in encouraging planning, but in helping people shape those plans into blueprints that truly deliver the retirement South Africans want.”

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