FNB Survey Reveals Retirement Expectations Collide with Harsh Realities

A newly released FNB Retirement Insights Survey delivers a sobering wake-up call to South Africans: while many envision retirement as a time of freedom and financial ease, the reality is vastly different for most.

Despite 60% of adults under 60 claiming they have a retirement plan, only 10% expect to fully retire by age 60 a stark indicator of the country’s growing retirement gap.

Among middle-income earners, contributions to retirement annuities have fallen dramatically from 51% to 34% as mounting debt and daily costs force difficult tradeoffs.

Even those trying to save express doubt and emotional strain, with rising anxiety about health expenses, sustaining income, and the emotional impact of aging.

“We’re encouraged by growing awareness, but without meaningful action, it’s not enough,” notes Lytania Johnson, CEO of FNB Personal Segment. “The shift from a ‘one day’ to ‘day one’ mentality needs consistent support from financial providers, not just optimism.”

“Retirement isn’t being ignored it’s being feared,” adds Sizwe Nxedlana, CEO of FNB Private Segment. “People are overwhelmed, confused, and unsure where to begin. It’s our job to help them start small and build confidence.”

Emotional Undercurrents

Older respondents describe working well past their planned retirement, cutting spending, or relying on adult children.

Some admit to feeling isolated or regretful expressing that they missed key planning milestones earlier in life. Meanwhile, younger South Africans remain hopeful but face the same systemic barriers.

Estate Planning Challenges

The survey also highlights serious gaps in estate planning. While funeral cover is near universal (60%), just 40% have a signed Will, and a third haven’t considered drafting one.

Misconceptions that Wills are only for the wealthy persist, especially among younger and lower-income households.

“Funeral cover eases immediate pain, but a Will protects for the long run,” says Nxedlana. “It’s not about wealth it’s about responsibility.”

Two-Pot System: Progress and Pressure

The Two-Pot Retirement System is gaining traction, with nearly 70% of respondents aware of it and 43% of those with savings pots choosing not to withdraw.

Still, Nxedlana warns that the system risks becoming a go-to emergency fund unless accompanied by strong financial education.

Generational Shift in Retirement Thinking

Over half of South Africans expect to boost retirement income through side hustles or part-time work. More encouragingly, bank platforms are now the top choice for retirement guidance outpacing social media and peer groups. The public wants lower fees, simpler tools, and advice rooted in trust.

What This Means for the South African Economy and Society

This data points to a country rethinking retirement in real-time. Lower contributions and delayed retirement could disrupt workforce dynamics, increase dependency ratios, and challenge the resilience of middle-income households.

Yet the rising demand for practical tools and trustworthy advice suggests opportunity: for innovation, outreach, and transforming fear into action.

Retirement is no longer a distant event it’s a daily journey shaped by emotion, behavior, and access. Financial institutions, policymakers, and civil society have a role to play in bridging the expectation gap so that the futures South Africans dream of can truly be within reach.

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