Trouble brewing for people under 65 in South Africa
Working-age South Africans say they cannot afford to save for retirement because their disposable income is allocated to other expenses. This leaves them exposed to greater risks later in life.
This is one of the worrying findings in the 2026 FNB Retirement Insights Survey, where over half the respondents indicated that they were falling short of retirement savings.
The survey examines how South Africans perceive, prepare for, and experience retirement.
Although South Africans are increasingly taking an active role in retirement planning, the survey results showed that having a plan does not necessarily mean being prepared for retirement.
Retirement readiness is increasingly influenced by factors such as access to information, the financial products selected, debt management, and the ability to balance current financial pressures with the need for future financial security.
FNB Wealth and Investments CEO Bheki Mkhize said that one of the key insights from this year’s results is that achieving retirement readiness requires a gradual accumulation of wise financial decisions and the appropriate products.
“Many South Africans are already doing something about retirement. They may be contributing to a retirement fund, saving when they can, investing, building a business or planning to use an asset later in life,” said Mkhize.
“While these actions are important, there are still significant gaps in overall preparedness because a complete retirement strategy is rarely built around a single product or decision,” he said.
24% of individuals under 60 without a retirement plan are unsure where to find savings and investment products. This figure is nearly double the 13% reported in 2025.
Additionally, 53% of respondents report they cannot save because their disposable income is allocated to other expenses, while 21% rely on assets they can sell in retirement rather than using formal retirement products.
AI for assistance, but not a replacement for advice
According to Mkhize, these findings highlight the need for simpler pathways into retirement planning.
“The strongest retirement strategies balance growth with access, flexibility with discipline, and today’s pressing needs with tomorrow’s long-term security,” he said.
“Retirement annuities, pension and provident funds, preservation products, tax-free savings, emergency savings, insurance and estate planning can all play different roles, but it is vital that they are combined in a way that delivers the desired retirement outcome.”
FNB Wealth and Investments Product Head Samukelo Zwane said the findings also show that technology is changing how people access financial information.
The survey revealed that AI is serving as a financial activation tool, especially for younger and lower-income consumers.
“AI is becoming an important entry point for many consumers who want financial information that is easy to access, simple to understand and available without judgment,” he said.
“For people who feel out of their depth in financial conversations, AI can make it easier to ask questions, build knowledge and explore options.”
Those in lower-income brackets who use AI tend to consult a wider range of financial advice sources and are more likely to invest in products like unit trusts and tax-free savings accounts.
Additionally, the findings indicate a strong correlation between AI usage and formal retirement planning, with lower-income consumers who use AI being significantly more likely to have a retirement plan in place.
However, Zwane stressed that AI should not be viewed as a replacement for advice.
“AI can help close the information gap, but it does not fully close the gap between understanding options and making the right decision,” he said.
“Consumers still need trusted human advice to validate information, contextualise it and turn it into a plan that fits their income, goals, responsibilities and life stage. AI creates access, while the adviser helps create the plan.”
The continued use of the two-pot retirement system as also a significant theme in the 2026 research findings.
The survey revealed that 49% of individuals under 60 years old with retirement products have withdrawn from the two-pot system since its introduction.
The primary reasons for these withdrawals were immediate financial needs: 46% withdrew funds to cover day-to-day expenses, 36% to purchase appliances, and 35% to pay off debt.
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