Sanlam has released its annual retirement Benchmark Survey for 2017, focusing on the financial wellness of employees in South Africa.
The survey – which covered 1,317 well-educated professionals, with 60% earning more than R300,000 per annum – questioned how people plan to see themselves through retirement.
Nearly two out of 10 respondents said that had no current plans when it comes to retirement, while nearly 60% said they have a retirement annuity.
Plans for retirement
- Nothing, I am in trouble – 17.37%
- I have a retirement annuity – 57.16%
- I have some investments (Unit trusts, call account, savings at bank) – 44.52%
- I have other property which I intend to rent out – 21.13%
- I have additional income on the side related to my hobbies – 9.28%
- I will rent out part of my primary residence to student, tenants or holiday makers – 5.92%
- I will draw an income from other business interests – 9.87%
“Saving for retirement as an explicit goal ranks as the sixth most pressing financial stressor among middle class South Africans. If we want to improve outcomes, we need to do so with the knowledge that it is not a ‘top of mind’ financial concern for most people,” says Sanlam Employee Benefits CEO Dawie de Villiers.
“An appropriate mix of default strategies combined with member choice within a framework of member empowerment tools is the best way to accomplish this.”
When asked how they plan to cope during retirement, the bulk of respondents said they would continue to work beyond retirement age.
Coping mechanisms for retirement
- I will continue to work beyond retirement age – 60.36%
- I will have to rely heavily on debt – 2.99%
- I will reduce my current standard of living – 73.21%
- I will rely on my children for assistance – 9.16%
- Cancel my medical aid and use state facilities – 9.06%
- I will live off my investments – 62.25%
- I will have to downsize my property for a smaller lock up & go – 48.31%
- I can’t think that far ahead at this stage – 22.21%
- I have no clue – 12.45%