Most South Africans struggle to save for retirement
A new survey finds that more South Africans are struggling to save for retirement than a year ago due to rising costs and a flat economy.
The survey of more than 3,400 South Africans, conducted by Ipsos, found that three in every 10 respondents believe that their families will be better off a year from now versus just over half who believe that things will be about the same.
Ipsos noted that economic growth has been very weak over the past few years and citizens are feeling the pinch of rising prices.
To gain some understanding of affordability, the research group asked the general public how easy or difficult they find it to afford a number of items.
The chart below compares the situation in November 2015 with November 2016.
How easy or difficult is it for you to afford the following items?
“It is clear that all South Africans, regardless of income, feel the pressure from rising prices as they found it more difficult in November 2016 than in November 2015 to afford all the items – with the exception of electricity,” Ipsos said.
The public still finds it most difficult to save for retirement and pay for a place to live, while citizens indicated that education is far more difficult to afford than about a year ago.
According to the World Bank, only 6% of South Africans save up enough for retirement, while FNB has said that those of us who do manage to save each month, fall well short of the required amount – 6% – 9% of a required 15%.
Worse still, a third of South Africans still have debt to repay upon their retirement.
Ipsos also noted that there has been a sharp increase in the proportion who find it difficult to afford food – however, South Africans are clear that increases in food prices can be linked to the drought as more than six in every ten agreed with the statement: “The current drought has made food prices unaffordable”.
Read: How much you would need to save every month to retire a millionaire in South Africa
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