Building a confident future: rethinking retirement in South Africa

There is a hard truth we can no longer ignore: if we don’t act now, most working South Africans will have no choice but to work until they’re 80. Not because they want to, but because they have to.

When it comes to retirement, expectations often do not meet reality. The consumer portion of this year’s study revealed that respondents expected to retire comfortably at the age of 60. However, Sanlam Corporate – our Age of Confidence research – showed a starkly different picture: South Africans, on average, may need to work a full two decades past the normal retirement age to maintain their lifestyle.

Additionally, our 2025 Benchmark study found that almost half of respondents use Google for financial information, and just 22% consult a financial advisor.

Unfortunately, retirement outcomes are unlikely to improve if people aren’t seeking professional guidance and don’t fully understand their realistic retirement age.

We hope that sharing this information prompts action. At Sanlam Corporate, we believe in the power of confidence. Financial confidence empowers people to plan, build, to thrive. It underpins everything from workforce productivity to community resilience. And right now, that confidence is under strain.

The reality behind the numbers

• Since the Two-Pot System came into effect on September 1, 2024, 36% of survey respondents had taken either the full maximum ‘early access’ allowance or a portion of this allowance. While these withdrawals may offer short-term relief, they significantly reduce the likelihood of a confident retirement.
• 47% of those who changed jobs previously cashed in their full retirement savings.
• 26% of respondents shared that they will only seek professional advice around retirement needs within the last five years before retirement.

These findings from retirement fund members point to a system under pressure.

Reimagining the working lifecycle

The Sanlam Benchmark data is powerful, but data alone won’t drive change. What’s needed now is a reimagination of what a sustainable, supportive working life looks like in South Africa. This means reshaping employee benefits, deepening financial education, and creating better linkages between work, wellness, and retirement.

We must move beyond seeing retirement as a “cut-off age” and start thinking about it as a phase to be earned through empowerment, not endured through necessity.

That’s why Sanlam Corporate has committed to building solutions that address the whole person, including:

• Affordable risk cover to protect families
• Retirement solutions that provide financial security, cost savings, and bespoke investment opportunities
• Investment solutions tailored to evolving needs
• Holistic wellness and mental health interventions
• Accessible financial advice
• A commitment to knowledge-sharing via platforms like the Sanlam Knowledgebase, which grew from 2,638 users in 2021 to over 65,000 users in 2024

These are not just products. They are lifelines. And when employers partner with us, they aren’t just buying solutions - they’re building a better working South Africa.

The bigger picture: aligning globally around retirement

South Africa’s presidency of the G20 and B20 in 2025 presents a generational opportunity to shape inclusive global reform from an African perspective. As a key sponsor, Sanlam is proud to play a strategic role in these conversations.

While retirement has not historically been a headline topic at the G20, its importance has grown steadily. Since the 2010 Seoul Summit, G20 leaders have acknowledged the implications of ageing societies for economic growth, workforce participation, and social security. In Osaka 2019, population ageing was explicitly recognised as a global policy priority, with leaders calling for healthy and active ageing, longer working lives, and more inclusive social protection systems.

This context matters. It shows us that retirement is no longer just a personal milestone - it’s a macroeconomic issue. A confident retirement system boosts national productivity, financial stability, and societal well-being.

But we know transformation doesn’t just happen in Davos or Sandton conference rooms alone. It happens in HR departments, in payroll policies, in lunchroom conversations with people asking: “Will I be okay when I retire?”

The Benchmark findings are clear: we can no longer afford to wait for perfect conditions. The time to act - boldly, collaboratively, and compassionately - is now.

The 2025 Sanlam Benchmark event on June 19 will be a critical moment to share insights, but more importantly, to connect with leaders who care deeply about people, purpose, and long-term prosperity.

If we align around the data - and more importantly, the people behind the data - we can rewrite South Africa’s economic story. A story not of perpetual struggle, but of growing confidence.

Because when people feel secure, they build. When they build, communities rise. And when communities rise, South Africa thrives.

* Mkhize is the CEO of Sanlam Corporate.

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