The dream of a comfortable retirement is slipping away for the majority of South Africans. According to the 10X Investments Retirement Reality Report 2023/2024, only 6% of the population is on track to retire with financial security.
This alarming statistic exposes a deep-rooted national crisis that demands urgent attention from individuals, institutions, and policymakers alike.
1. The Retirement Time Bomb
For the sixth year running, the 10X Retirement Reality Report has painted a sobering picture of South Africa’s financial preparedness. Based on insights from the Brand Atlas Survey — which monitors over 15 million economically active South Africans — the 2023/2024 edition reveals:
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94% of South Africans are not confident about their retirement prospects.
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91% have no formal retirement plan or don’t track their progress.
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Many are completely unaware of how much they need to save or whether they’re on track.
This data confirms a critical truth: retirement is no longer a distant goal—it’s a mounting emergency.
2. Economic Pressures Undermining Retirement Planning
Several macroeconomic factors are eroding South Africans’ ability to save for retirement:
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High inflation and the rising cost of living have diminished disposable income.
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Unemployment remains among the highest in the world, leaving many unable to contribute to savings or pensions.
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Load shedding and energy instability, driven by Eskom’s challenges, have disrupted businesses and household finances.
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Interest rate hikes have increased debt servicing costs, further squeezing savings potential.
These pressures are pushing many South Africans into short-term survival mode, with long-term goals like retirement becoming an afterthought.
3. Gender Divide: Women at Greater Risk
One of the more nuanced findings in the report is the gender disparity in retirement readiness:
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Women are more risk-averse in their investment choices, often favoring low-yield savings over growth-oriented assets like equities.
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Career breaks, wage gaps, and longer life expectancy exacerbate the retirement gap for women.
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Many women express less confidence in their financial literacy, leading to lower participation in long-term financial planning.
Unless addressed, this gap could leave a disproportionate number of older women financially vulnerable.
4. A Culture of Under-Saving
The report underscores the low savings culture prevalent in the country:
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Less than half of the working population (49%) are saving for retirement.
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Of those saving, many contribute below the recommended 15% of gross income.
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There’s a widespread misconception that a retirement plan starts later in life, even though the power of compound interest heavily favors starting early.
This mindset is pushing millions toward retirement insecurity or dependency on relatives and government grants.
5. Dangerous Myths and Misconceptions
Many South Africans place false hope in informal or risky retirement strategies:
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Relying on family or children for support in old age.
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Believing that property ownership alone is sufficient for retirement security.
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Assuming that the government’s old-age grant will cover their needs.
In reality, the state grant (currently around R2,080/month) is barely enough to cover basic living expenses, let alone maintain a comfortable standard of living.
6. Forced Retirement and Lack of Control
The report also shows a troubling trend:
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The percentage of people retiring on their own terms has dropped from 70% in 2021 to 60% in 2023.
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Many older workers are being pushed into early retirement due to illness, job loss, or employer restructuring.
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Without adequate savings, these individuals face immediate financial hardship and long-term poverty.
7. What Needs to Change?
For Individuals:
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Start early: Even small contributions grow significantly over time.
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Educate yourself: Improve financial literacy around compound interest, inflation, and investment options.
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Diversify: Don’t rely solely on property or low-interest savings accounts.
For Employers:
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Encourage participation in workplace retirement funds.
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Offer financial education workshops to employees.
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Match contributions where possible.
For Government & Financial Institutions:
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Expand access to affordable retirement products for informal workers.
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Drive nationwide financial literacy campaigns.
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Explore policy incentives for long-term savings.
Time for a Wake-Up Call
The 6% figure is not just a statistic—it’s a stark reflection of a system in distress. If current trends continue, millions of South Africans will face retirement with little more than hope and hardship. The 10X Investments Retirement Reality Report 2023/2024 delivers a loud and urgent message: the time to act is now.
Whether you’re in your 20s or your 50s, the most important investment you can make today is in your future self. Because the reality is clear: retirement is coming—ready or not.
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