The Retirement Advice Revolution: How Can We Help South Africans Secure Their Golden Years?

Ronald has been crisscrossing the country with a couple of EasyRetire colleagues, helping EasyRetire Rise clients optimize their retirement savings. In this blog, he shares his learnings from the field, offering insights into what it takes to help more South Africans secure their financial future.

“Questions are the answers you might need.”

This simple yet profound statement rings true in a world where many South Africans are woefully unprepared for retirement. With household savings sitting at a mere 0.5%—one of the lowest rates in the world—it's clear that we're facing a retirement crisis. As staggering as it sounds, 94% of South Africans aren’t on track to retire comfortably, according to the Association for Savings and Investment South Africa (ASISA).

Let's face it, nobody wants to be working into their golden years just to make ends meet. Yet, research by Liberty shows many South Africans only consider retirement savings after 40, missing out on crucial tax benefits and compounding returns.

So, how do we bridge the gap between where we are and where we need to be?

The answer lies in collaboration—employers, financial advisors, and individuals themselves must take proactive steps to improve retirement outcomes. But as the saying goes, "Trying to get a man to understand something when his salary depends on him not understanding it" is as futile as defying the laws of physics. In other words, the system we operate in needs a complete reorientation—one where asking the right questions leads to actionable answers.

Here’s how we can start.

Ask the Right Questions

When it comes to retirement, many South Africans aren’t asking the right questions early enough. According to Liberty’s research, most only begin thinking seriously about retirement savings after the age of 40—far too late to reap the full benefits of compound growth. Financial advisors must change the narrative by encouraging clients to ask the following:

• What do I want my retirement to look like?
• When do I want to stop working?
• How much money will I need to achieve my desired lifestyle?

By starting the conversation earlier, particularly with clients in their 20s and 30s, advisors can help set the groundwork for long-term retirement success.

Empower with Education, Not Just Information

A major hurdle to better retirement outcomes is a lack of financial literacy. Many people don't have retirement plans simply because they don’t know where to start or they perceive it as too expensive. Nearly 50% of South Africans aren’t saving anything for retirement, and only 31% of people aged 30-35 have established proper retirement plans. That number jumps to 63% for people aged 45-49, indicating that many people only start planning for retirement far too late.

Financial advisors can help close this gap by offering clear, actionable advice—without drowning clients in jargon. Break down the benefits of tax-advantaged accounts like Retirement Annuities (RAs) or Tax-Free Savings Accounts (TFSAs) in simple terms, and show the real-world impact of starting early. Use storytelling to demonstrate how small, consistent contributions can snowball into a sizable nest egg over time.

Shift the Focus from Fear to Opportunity

The retirement conversation is often framed in terms of what people will lose if they don’t save enough, but this approach can backfire. Fear of the unknown, combined with financial pressures, leads many to disengage completely from the planning process. Instead, advisors should focus on the opportunities that come with financial preparedness—freedom, peace of mind, and the ability to enjoy a retirement on your own terms.

By reframing the conversation, financial advisors can help people feel excited about their future instead of overwhelmed by it.

The Role of Employers: Making Retirement Savings Easy

Employers also have a critical role to play in improving retirement outcomes. They can make a significant difference by:

• Offering matching contributions: Employers that match a percentage of employee contributions to a retirement fund provide a powerful incentive to save.
• Providing financial education workshops: Regular workshops or webinars on financial literacy and retirement planning can equip employees with the knowledge they need to make informed decisions.
• Simplifying enrollment processes: Streamlined, automatic enrollment into company retirement plans can remove the friction that prevents many from signing up.

In short, employers should act as facilitators, making it as easy and rewarding as possible for their employees to save for the future.

Personalization: Tailoring Advice to Fit Lifestyles

A one-size-fits-all approach to retirement advice no longer works, particularly in South Africa, where economic disparities are stark. Advisors must offer personalized advice that takes into account each client’s unique circumstances, lifestyle, and financial responsibilities. For some, the goal might be an early retirement. For others, it might be achieving financial independence while supporting extended family members.

Building custom strategies based on real-life scenarios will not only resonate more but will also increase the likelihood of clients sticking to their plans.

What Can Be Done Today?

Retirement planning is not something that happens in isolation—it requires ongoing effort and attention. Here's what financial advisors, employers, and individuals can do today to make retirement outcomes better tomorrow:

1. Start Earlier: Advisors should encourage clients to start saving in their 20s or 30s, even if the amounts are small. Over time, these small contributions will grow into something substantial.
2. Leverage Technology: Advisors can use digital tools to make retirement planning more interactive and accessible. Apps that track savings, spending, and investments in real-time can empower individuals to take control of their financial futures.
3. Focus on the Positives: Retirement isn’t about cutting back—it's about securing the life you want to live. By focusing on the end goals, advisors can help people see retirement as something to look forward to, not something to fear.
4. Collaborate with Employers: Employers can offer more than just a paycheck—they can offer peace of mind by setting up retirement savings programs and making it easy for employees to participate.
5. Financial Literacy Matters: Providing regular, clear, and relatable financial education can make a world of difference in helping South Africans feel empowered to take action.

Final Thoughts: A Collective Effort

Improving retirement outcomes in South Africa will require a collective effort from financial advisors, employers, and individuals. Asking the right questions, offering personalized advice, and creating easy pathways for people to save are just a few ways we can turn the tide.

Ultimately, the goal is simple: we want more South Africans to retire comfortably and live life on their own terms. And that starts by asking better questions—today.

Remember: Planning for retirement isn't just about the distant future. It’s about creating the life you want now, with the peace of mind that comes from knowing you’ll be secure later. If we can start asking the right questions and focus on creating opportunities instead of roadblocks, we can shift the retirement landscape in South Africa for the better.

Ready to get started? EasyEquities offers a user-friendly platform to invest in RAs and build a brighter tomorrow.

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