THIS is the eighth article of a nine-part series that summarises findings from Just Retirement Insights 2024, a tracking study conducted by retirement income specialist, Just SA.
Just Retirement Insights 2024 asked the question: “If your retirement money is enough for now, but may run out in the future, who will you rely on to provide support?” Forty-six percent of respondents said they would rely on government, a sharp increase from 27% in the 2022 study. Some 39% indicated they would rely on their children or grandchildren.
The heavy burden on state and family is indicative of the retirement income crisis in South Africa. It could also be attributed to difficult economic circumstances or to a lack of retirement planning – or both.
Add in South Africa’s inflation scenario, and retirement savings have to work very hard for retirees to avoid relying on others for financial support. Eighty-four percent of survey respondents indicated that it was critically important for their retirement income to keep pace with inflation every year. History shows that inflation in South Africa has only been below 5% in 10 of the last 33 years.
At Just SA, we don’t believe it is all doom and gloom. There are retirement income options available in the market that offer sustainable solutions for South African retirees.
Read the full report here: https://retirementinsights.co.za/
PERSONAL FINANCE