As life expectancy increases, many residents of South Africa are facing a pension provision crisis. The article examines the complexities of planning for a longer life and offers ideas for adapting retirement strategies to ensure a sustainable future.
The pension situation in South Africa is comparable to trying to plan a long trip with insufficient fuel, only to find out the destination is farther than initially assumed. Plans were made assuming a shorter period, but life itself has changed drastically.
According to the World Health Organization, the average global life expectancy is about 73 years. In South Africa, a person aged 65 can expect to live around 80.7 years, and those who reach 70 can live up to 83 years. This increase is due to progress in medical technology, improved nutrition, expanded access to sanitation, and the development of public health infrastructure.
While this is a significant achievement, it generates financial difficulties that were not accounted for in traditional pension models. Older schemes assumed a relatively predictable end, and retirement savings were built based on this. However, the risk of running out of funds in old age has become a real problem for many.
According to the 10X Investments Retirement Reality Report, nearly three in ten South Africans over 50 believe their pension plan is either inadequate or significantly behind. If a pension lasts ten years, this gap is serious, but if it stretches to 25–30 years, it becomes a crisis.
For many, the problem is not indifference, but economic pressure, where daily expenses leave nothing for the future. The risk is that this day will come sooner than expected, and there simply won't be enough money for the entire duration.
Economists and researchers have begun referring to people over 50 as the 'longevity economy'—a vast and rapidly growing segment of the population that is healthier, more active, and financially engaged at this age than previous generations. In South Africa, the number of people aged 60 and over increased from 3.6 million in 2002 to 6.6 million in 2025, and this figure continues to rise.
This generation is largely underserved by financial products and services that are still based on outdated notions of later life. The life model consisting of education, work, and then retirement is giving way to a more flexible structure. The World Economic Forum described this as the emergence of a multi-stage life, where career breaks, a second life stage, and flexible schedules become the norm, not the exception.
In South Africa, this is already a reality for many. Although participation of older people in the labor market remains low overall, there is a shift in trend, especially among older women, who are increasingly remaining economically active. Furthermore, almost 90% of South Africans under 60 plan to continue working in some capacity after official retirement age, striving for part-time employment or additional income sources, partly motivated by financial necessity due to insufficient savings.
A longer and healthier life means that pension expenses are sustained much longer than previously assumed. Healthcare costs, inflation, lifestyle expenses, and unforeseen care needs accumulate over a 25–30 year retirement period completely differently than during a 10–15 year pension. The required financial sustainability is of a different order of magnitude, and the savings situation in South Africa exacerbates this problem.
Many pension plans fail not due to negligence, but due to underestimating needs. According to the 10X Retirement Reality Report, an estimated only 6% of the South African working population is on track for a comfortable retirement. This means that about 94% of the population is approaching retirement without adequate provision.
A useful general benchmark often used to understand the required amount is a method planners call the 'Rule of 300': multiply your expected monthly expenses by 300. The result represents the approximate capital needed at retirement to maintain this income for 25 years with a moderate withdrawal rate of about 4–5% annually.
Consider an example of a person retiring at 60 and living until 85 or beyond, which is potentially 25–30 years of income, or 300–360 months of expenses that need to be covered from accumulated capital. With monthly expenses of 20,000 Rand, the Rule of 300 indicates a required capital of 6,000,000 Rand. With expenses of 30,000 Rand per month, this amount rises to 9,000,000 Rand. These figures do not account for inflation, investment returns, changes in income, life expectancy beyond assumptions, or unexpected medical expenses that will affect the real value of capital over three decades, but they illustrate the enormous amount of capital required for comfortable retirement funding.
Choosing the right pension product is crucial. The correct choice depends on individual circumstances, health status, other sources of income, and risk tolerance, so professional financial advice is strongly recommended before making a decision. Decisions regarding retirement income, such as life annuities or living annuities, carry various risks, benefits, and suitability considerations depending on personal circumstances.
Longevity changes everything. Retirement ceases to be a short, predictable phase, fundamentally transforming the approach to planning. Practical foundations are laid early. Shifting debt onto retirement reduces flexibility and increases pressure on already limited income, so debt reduction is often considered an important goal in pension planning.
In general financial planning discussions, strategies such as extending work can positively impact increased contributions, delayed withdrawals, and continued compound interest. The process during life is no less important. According to the 10X Retirement Reality Report, approximately 56% of South Africans who change jobs withdraw their pension savings, despite the fact that retaining funds remains one of the decisive factors for long-term outcomes. Every withdrawal resets progress and weakens the final result.
After retirement, sustainability depends on three variables: fees, withdrawal rates, and diversification. These factors are widely recognized in financial planning as influencing long-term sustainability, with a well-diversified portfolio remaining essential to overcome volatility over a long period.
Ultimately, longevity is not a risk. Lack of preparation is the risk. The question is not just whether you can retire, but whether your plan can support the life you are likely to live.
Professor Thole Mokoena, the Health Ombudsman, issued a statement regarding acute problems in South Africa's public healthcare system following the investigation into the tragic deaths of six healthcare workers in KwaZulu-Natal. He strongly called for immediate reforms and increased support for medical personnel.
The investigation conducted by the Health Ombudsman concerning the deaths of the six specialists elicited mixed reactions. Medical organizations, the public sector union, and the DA party agreed that the report exposes serious deficiencies in the public health system, but they disagree on the conclusion that workplace harassment contributed to these deaths.
Although Professor Thole Mokoena did not find a direct link between the deaths and workplace harassment, persecution, or poor working conditions, those reacting to the report noted that it highlighted deeply rooted issues requiring urgent government intervention.
The South African Medical Association (SAMA) stated that the report must serve as a basis for significant transformations. The Chairperson of SAMA, Dr. Mvusi Mzukwa, noted that even if the death of these doctors was not caused by working conditions, thousands of other healthcare workers continue to work under precarious conditions.
He added that the findings confirm concerns that SAMA has voiced for years regarding the deterioration of the public health sector. Mzukwa emphasized that provincial health departments cannot continue to freeze vacancies, expecting that fewer specialists will serve more patients with limited resources, assuming there will be no consequences.
One of the key findings of the investigation was that many doctors, especially interns, felt pressured not to take sick leave for fear of extending their internship or increasing the workload on colleagues. This underscores the need to improve employee well-being programs. Mzukwa stated that no doctor should feel that taking care of their own health comes at the expense of patients or colleagues, as a system that does not allow its doctors to become patients is under severe strain.
He strongly urged national and provincial health authorities to immediately implement the Ombudsman's recommendations. Mzukwa stressed that the report should not remain just a dusty document; every recommendation must be accompanied by clear implementation plans, measurable deadlines, and accountability.
The DA party in KwaZulu-Natal welcomed the report, noting that it clarified an issue of widespread public concern following the deaths of six healthcare workers working in provincial hospitals. Provincial Health Representative Dr. Imran Kika stated that while the investigation excluded a direct link between the deaths and workplace harassment or adverse conditions, the findings should not be interpreted as an endorsement of the province's healthcare system. Kika warned that this should not be construed as a clean report on the health status of the KZN healthcare system, but rather as a mandate for the urgent implementation of the Ombudsman's recommendations and the resolution of long-standing problems undermining staff well-being and patient care.
However, the Public Service Union (PSA) expressed 'deep disappointment and concern' with the Ombudsman's finding that excluded workplace harassment as a contributing factor to the deaths of healthcare workers in KwaZulu-Natal. While acknowledging the role of the Ombudsman, the union stated that the findings overlooked the impact of a toxic work environment, intimidation, persecution, excessive workload, and inadequate management practices on staff mental health.
The PSA also criticized its exclusion from the investigation and noted that public health workers continue to face chronic staff shortages, resource scarcity, increasing patient flow, and insufficient psychosocial support. The union warned that the findings might discourage healthcare workers from reporting harassment and abuse, and called on the KwaZulu-Natal Department of Health to strengthen anti-harassment measures, improve confidential reporting channels, expand employee well-being services, and hold managers accountable in cases of persecution or abuse of power.
The investigation was initiated after Minister of Health Dr. Aaron Motsoaledi and former Chairperson of the Parliamentary Health Committee Dr. Sibongiseni Dhlomo expressed concern following the deaths of healthcare workers at Prince Mshiyeni Memorial, Addington, Port Shepstone, Ngwelezane, Benedictine, and Vryheid hospitals. Although the investigation found no evidence of a direct link between the deaths and working conditions, it revealed widespread problems in the public health sector, including staff shortages, frozen vacancies, excessive workload, shortage of medical equipment and consumables, inadequate employee well-being services, outdated infrastructure, and safety issues. The Ombudsman recommended strengthening employee well-being programs, improving staff support services, enhancing oversight and accountability, and addressing safety concerns. Monitoring the implementation of these recommendations will be carried out by the Healthcare Standards Compliance Directorate.
The decision to stay in South Africa has become extremely risky for many migrants due to growing political hostility and a changing legal landscape, creating an atmosphere of intense fear and uncertainty.
Pressure has reached a critical point with the emergence of the 'March and March' movement—a nationwide campaign against immigrants that has set an unofficial deadline of June 30, 2026, for all undocumented foreigners to leave.
One anonymous 28-year-old citizen from Zambia spoke about the support she received during recent unrest. When the June 30th closure occurred, her South African neighbor hid her children in her home while protesters marched through their neighborhood. For her, this act represents the 'real South Africa,' which strongly contrasts with the aggressive images of protesters often shown on television.
She also noted that while politicians may blame migrants for economic problems, such as job shortages, the people they interact with in daily life truly understand their character. A 34-year-old citizen from Zimbabwe, who wished to remain anonymous, explained that returning home is impossible for him because there are no employment opportunities there, and he came here seeking a better life.
He emphasized that his attempts to legalize his status did not receive proper assistance from the Department of Home Affairs (DHA). He also stated that crime should not be attributed to any specific nationality.
For those who have decided to stay, the situation is not just a fight against bureaucracy, but a struggle for survival against coordinated efforts aimed at making their existence impossible. However, the current climate has allowed some employers to exploit xenophobic sentiments, leading to reports of unfair dismissals and illegal 'pseudo-layoffs' among migrant workers.
A 30-year-old citizen from Mozambique, who preferred to remain anonymous, stated: 'I am not a criminal, and I am not depriving anyone of a livelihood.' She clarified that her only 'crime' is selling vegetables to support her family back home. She vowed to stay at all costs until her status is legalized, claiming that assistance from the Department of Home Affairs is unavailable.
She also dispelled the common misconception that they arrived without any documents, which is untrue. An anonymous 40-year-old citizen from Zimbabwe noted that people perceive them as criminals but ignore the thousands of rands they spend maintaining legal documentation in a fundamentally flawed system. He added that the Department of Home Affairs suffers from terrible queues and even more serious corruption, and that being undocumented is not a choice, but a consequence of the system itself. Nevertheless, his life has taken root here, and he intends to stay, even if it means living in the shadows.
Ultimately, belonging is not a piece of paper issued by the government; it is an act of sheer will. Migrants who have chosen to stay are redefining the very fabric of the communities in which they live, proving that home is built not where you started, but where you stand your ground.
While political discussions and border debates continue within echo chambers, these people quietly continue their lives, embodying their beliefs in the schools, workplaces, and streets of the country they have come to call home.
A new joint study by Liberty and the University of Cape Town (UCT) has shown that South Africans aged between 35 and 55 are experiencing growing anxiety regarding retirement provision, job stability, and the rising cost of living, despite being in a period of earning their highest incomes.
The study demonstrates that for this demographic group, financial stability has become more important than accumulated wealth as a primary measure of success. South Africans in their prime careers feel increasingly financially vulnerable as family maintenance costs, supporting relatives, and retirement preparation confront general economic uncertainty, even with higher salaries.
The report, titled 'The Messy Middle: A focus on mid-careers 35 to 55', is based on interviews with 43 professionals aged 35 to 55 from various industries, as well as secondary research and academic literature. It analyzes the financial realities, aspirations, and concerns of one of South Africa's most economically significant groups.
According to the study, approximately 16 million South Africans fall into the 35–55 age bracket, with about a third belonging to high and affluent income segments. The average annual income for the 35–44 age group is approximately R378,937, while for the 45–54 age group, it reaches R472,327. Despite these higher incomes, many respondents reported feelings of financial exhaustion and emotional burnout, as their earnings coincide with the most demanding period of their lives.
The report states that many people are going through a phase of 'peak responsibility,' balancing a settled career, home ownership, raising children, supporting extended family, and managing growing financial obligations. Paul Egan, Director of the UCT Liberty Institute of Strategic Marketing, noted: 'The study shows that mid-aged South Africans are not failing at planning, but managing risks under constraints. This generation is trying to hold together careers, families, ambitions, and financial commitments in an environment where the margin for error seems to be shrinking.'
Researchers identified a state they termed 'peak vulnerability'—a life stage where financial obligations reach their maximum, and the ability to recover from financial setbacks decreases as retirement approaches. Although many respondents have established careers, the report points to growing financial fragility.
Nearly three-quarters of working South Africans aged 30 to 49 reported sometimes or regularly living beyond their means, and about 86% financially support children. The cost of education consistently featured as one of the biggest financial burdens for households. Many feared job loss, serious illness, or unexpected financial shocks that could erase years of hard progress. Some described their situation as 'one bad year away from financial regression.'
The study also highlights widespread concern over employment stability, career stagnation, and the impact of technological changes. Many respondents noted that the traditional guarantee of employment no longer exists. Artificial intelligence and rapid technological advancements caused additional anxiety, as some feared their skills would become obsolete while feeling too old to change careers or start professional life from scratch. Researchers also pointed to the so-called 'plateau effect,' where many mid-career professionals feel that promotions and salary growth have slowed down, while their financial obligations continue to rise.
The report suggests that traditional markers of financial success are giving way to a stronger emphasis on stability and resilience. Instead of chasing a luxurious lifestyle or accumulating visible wealth, many respondents stated that their priority is protecting their families' quality of life and preventing financial decline.
John Taylor, Head of Liberty Corporate Benefits Consulting, stated: 'What people want more and more is not extravagance, but security. Today's drive is to remain stable, maintain dignity, and avoid regression.'
Many participants also reported a shift in priorities from continuous career growth to a broader understanding of well-being. Physical and mental health are increasingly viewed as integral parts of maintaining financial security, with concerns about personal well-being often outweighing purely financial worries. For many respondents, protecting health has become critical to preserving income, independence, and overall quality of life amid growing uncertainty.
The study also showed that many South Africans are rethinking their views on retirement. Rather than viewing it as a fixed age or the complete end of working life, respondents increasingly perceive it as a gradual transition involving multiple income streams, flexible work, consulting work, side ventures, and phased career changes.
Many participants expressed concern about whether they have saved enough for retirement, especially after career breaks, economic shocks, or delays in financial milestones. However, the report notes that many no longer view interrupted savings paths as a personal failure. Instead, respondents emphasize flexibility, resilience, and the ability to maintain financial stability during uncertain periods, defining retirement more through independence and dignity than through achieving a predetermined savings goal.
Taylor added: 'For many South Africans, the goal is no longer just retiring at a certain age, but creating sufficient stability and opportunities to confidently navigate an uncertain future.'
In conclusion, the report argues that financial institutions will need to revise traditional retirement planning models to better align with the realities faced by modern consumers. Researchers insist that financial products and advice must prioritize flexibility, income resilience, and support across different life stages, rather than focusing solely on fixed retirement outcomes.
Taylor believes: 'The role of financial institutions is changing. Consumers increasingly expect financial institutions to act as guides and protectors, helping to reduce fragility, build resilience, and support people through changing life stages, rather than just promoting idealized financial outcomes.'
The report concludes that this will require products, financial advice, and communication strategies that acknowledge changing financial circumstances, support major life transitions, and focus on long-term sustainability rather than perfection.
