Why you can’t ignore this massive problem in South Africa anymore

Financial services group 10X Investments has published a new report which shows that South Africa’s retirement-savings crisis is getting worse.

The 10X Retirement Reality Report (RRR19) – the findings of a survey that samples the universe of more than 15- million economically active South Africans – shows that 67% of people have no retirement plan at all or just a vague idea of one, 8% more than a year ago.
The disruptive asset manager says it has been trying to raise the alarm on the looming crisis for more than 11 years, as well as to alert people to solutions, yet few in the country are heeding the warnings.
It has therefore launched a competition offering a prize of R1 million to try to draw attention to the problem.

The company has presented hard data, including its annual Retirement Reality Report, published much analysis, and created and distributed educational material, such as a variety of free downloadable e-books.

South Africans report being shocked by the data and analysis and download the e-books in their thousands, but only a few take the necessary steps to tackle their own impending retirement crises.

Launching the inaugural Retirement Reality Report in 2018, 10X said it hoped the report would have a positive effect on South African workers, by waking people up and galvanising them into action.

“A year on, things are looking worse than ever,” the company said.

Among those who say they are saving for retirement, things are looking pretty grim too. The majority of them have little-to-no idea what their plan is, how it is performing, what chance they have of a decent retirement, or even how much they are paying in fees, many of saying there are no fees.

Of the respondents who said they had some sort of retirement plan, 72% felt concerned or were unsure that they would have enough to live on after they retired. Three-quarters of respondents accepted that they would need to keep earning some income after they retired.

Among those who say they are saving for retirement things are looking pretty grim too. The majority of them have little-to-no idea what their plan is, how it is performing, what chance they have of a decent retirement, or even how much they are paying in fees, many of saying there are no fees.

Of the respondents who said they had some sort of retirement plan, 72% felt concerned or were unsure that they would have enough to live on after they retired. Three-quarters of respondents accepted that they would need to keep earning some income after they retired.

When is a million worth more than a million?

10X Investments is offering a R1 million Retirement Annuity with the group in a competition designed to highlight the potential earnings that can be achieved through compound interest and having an investment vehicle that offers low fees.

“The entry process for the competition is simple yet very revealing. After entering their age and the age at which they plan to retire, entrants are shown how much R1 million invested today would grow to by the time they retired, thus showing the power of compound growth,” it said.

Illustrating a second key aspect of successful investing, competition entrants are also shown the results they would get with 10X, compared with what they would get if they paid the industry average of 3% in fees.

“Retirement saving success depends on a few very simple concepts, including the two that will be illustrated to each person who enters the competition. Hopefully this will inspire entrants to take a few simple steps to change their retirement outcomes massively,” 10X said.

Enter the competition to win a R1 million 10X retirement annuity.

Enter here


Read: Times are getting tougher for South Africans

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Why you can’t ignore this massive problem in South Africa anymore