--- title: "Adjust your retirement planning to reflect that 80 is the new 60" description: "South Africans who can afford to retire at age 65 are few and far between. Three-quarters will need to work another 15 years." type: "NewsArticle" publisher: "Daily Maverick" site: "https://www.dailymaverick.co.za" section: "GOOD OLD DAYS" author: "Neesa Moodley" author_url: "https://www.dailymaverick.co.za/author/neesa-moodley/" canonical_url: "https://www.dailymaverick.co.za/article/2025-02-13-retirement-planning-must-reflect-that-80-is-the-new-60/" published: "2025-02-13T21:12:35" updated: "2025-02-13T21:12:39" lang: "en-ZA" word_count: 615 --- # Adjust your retirement planning to reflect that 80 is the new 60 > South Africans who can afford to retire at age 65 are few and far between. Three-quarters will need to work another 15 years. By Neesa Moodley · Published 13 February 2025, 23:12 SAST · Updated 13 February 2025, 23:12 SAST ## Key points - Forget the golden years; in South Africa, it seems retirement is now a marathon, with the finish line pushed to 80 as financial planners urge us to trade our beach chairs for boardroom meetings to bridge the growing gap between our savings and our longevity. - South Africa's true retirement age is now closer to 80, with only 25% able to retire comfortably at 65, according to Sanlam Corporate data. - Financial experts advocate for a shift in retirement planning, emphasising empowerment and proactive strategies for all ages. - Retirement should focus on continued purpose and activity, with many retirees seeking personal fulfilment beyond financial stability. - To prepare for longer retirements, individuals should increase savings contributions, explore employer matching programmes, and seek professional financial advice. ## Content Financial planners have been putting out warnings about the rise in longevity and how this affects retirement for many years. Recent statistics from[Sanlam Corporate’s internal member data](https://www.sanlam.com/productcatalog/Pages/80-is-south-africas-real-retirement-age.aspx)confirm that South Africa’s true retirement age – the age at which most citizens can afford to retire comfortably – is closer to 80 than the long-held 60 or 65. Kanyisa Mkhize, chief executive of Sanlam Corporate, says the data indicates only 25% of South Africans can afford to retire at the official retirement age of 65. “Most people will need to work an additional 15 years to achieve financial security in retirement. This 15-year gap represents a financial challenge and a fundamental shift in how we think about retirement planning and employee benefits in South Africa,” Mkhize says. “This gap between expectation and reality presents significant challenges for individuals, businesses and the broader economy.” Johan Gouws, head of wealth advisory at PPS, believes retirement planning needs to change from a financial stress point to one of empowerment. “South Africans can proactively shape their financial futures by gaining practical strategies, innovative tools and actionable insights directly from industry experts, no matter their age or savings level. With the right tools, retirement can indeed be the best chapter of one’s life,” he says. Professor Bonang Mohale, chancellor of the University of the Free State, says retirement should be about continued purpose and productivity, rather than coming to a complete halt. “This perspective recognises the increasing reality that many retirees want or need to remain active, whether financially or for personal fulfilment,” Mohale says. And it isn’t just about remaining financially active. “Retirees are also taking advantage of active outdoor lifestyles, getting involved in clubs and community initiatives,” says Barto van der Merwe, managing director of Renishaw Property Developments. **Read more:**[How to make your pension keep up with inflation](https://www.dailymaverick.co.za/article/2024-08-04-make-your-pension-keep-up-with-inflation-heres-how/) #### **What you can do to prepare for a longer retirement** The short version is that you need to start saving more for retirement and saving sooner rather than later. Financial experts are shifting from recommendations of saving 10% to 15% of your income towards retirement to saving 15% to 20% instead. Mkhize recommends these practical steps to prepare for a longer retirement: **Increase contributions automatically:**Making sure your retirement saving contributions automatically increase each year in line with your annual salary increase is a simple way to reduce the “choice” dilemma. When contribution increases coincide with salary adjustments, you are less likely to feel the impact on your take-home pay. “This approach addresses one of the crucial challenges in retirement saving – many members never revise their contribution rates over their entire savings career,” Mkhize says. **Find out about employer matching programmes:** When you are applying for a job, find out about benefits that include employers matching your contributions. Some, though not all, employers will match the amount you save towards your retirement, which should incentivise you to save more rather than less. **Access financial advice:** Just as you would not rely on random people to educate your child, you should seek out professional financial advice when it comes to managing your retirement savings. There are hundreds of scams out there, so check that the person and/or company you are dealing with is legitimate. To confirm that a financial service provider (FSP) is authorised to provide the service, you can contact the Financial Sector Conduct Authority (FSCA) toll-free on 0800 110 443. An online search for a financial institution or person that is an authorised FSP in terms of the Financial Advisory and Intermediary Services Act can be done [here](https://www.fsca.co.za/Fais/Search_FSP.htm). **DM** *This story first appeared in our weekly Daily Maverick 168 newspaper, which is available countrywide for R35.* ![Image](https://www.dailymaverick.co.za/wp-content/uploads/2025/02/DM168-cover-8-Feb-2025-1-scaled.jpg)