The results from 10X Investments' second Retirement Reality Report (RRR19) suggest that, if anything, South Africa's retirement crisis is getting worse. This year, 67% of respondents in the Brand Atlas survey* indicated they had no retirement plan, or just a vague idea of one, 8% more than the number reported in 2018.
Almost half the respondents (46,2%) admitted they were not saving for retirement at all, with the overwhelming majority (91%) blaming insufficient means, or other priorities.
They are saying they can't afford to save.
This should surprise no one. South Africa's financial stress is palpable, manifesting not just in surveys like this, but in our rising national debt levels, the burden of insolvent state-owned enterprises (SOEs) such as SAA, Eskom and the SABC, the regular shortfall in tax revenues reported by Sars, and the many JSE-listed companies now reporting poor results.
Against this backdrop, it is understandable that many people are also struggling with their personal finances. And why our country's household savings rate is effectively zero, one of the lowest in the world.
The report, which was released last month, found that even among those respondents who said they had some sort of retirement plan (roughly half), nearly...