FNB says more people are planning for retirement, but rising costs still test readiness

More South Africans are taking retirement planning seriously, but many remain uncertain about whether their savings will be enough to withstand the realities of rising living costs, debt, healthcare expenses and family responsibilities.

This is according to the fourth edition of First National Bank’s (FNB) 2026 Retirement Insights Survey, released on Thursday.

The report provides a comprehensive overview of how South Africans across different income segments think about, prepare for and experience retirement.

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The findings point to a significant shift in retirement behaviour among South Africans, with more consumers taking active steps to plan for their financial futures despite ongoing economic pressures.

FNB says the strongest gains were observed among lower-income earners and those in their peak earning years, suggesting growing awareness of the importance of long-term financial planning.

“The increase in retirement plan ownership gives us confidence that the retirement conversation is gaining ground.

“It is particularly encouraging to see stronger planning behaviour among lower-income consumers, where the number of respondents with a retirement plan has risen significantly,” FNB chief executive Lytania Johnson said at an event in Johannesburg.

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While these findings reflect positive progress, Johnson says retirement planning is not only about saving more, but about understanding whether those savings will be sufficient to support the lifestyle and needs people expect in retirement.

She warned that increased intention is not the same as retirement readiness.

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“Many South Africans want to save, but the path to retirement still feels unclear. The survey shows growing intent, but people need simpler, more accessible guidance to turn good intentions into action.”

The survey highlights this gap between intention and action.

Of the respondents under 60 who do not have a retirement plan, 53% say they cannot afford to save because their disposable income is spent elsewhere.

A further 24% say they do not know where to access savings and investment products, almost double the 13% recorded in 2025. For many, unexpected emergencies, rising living costs and day-to-day expenses continue to crowd out long-term retirement planning.

Why planning alone is not enough

While the findings among under-60s point to encouraging improvements in retirement planning behaviour, the experiences of current retirees provide an important reality check.

FNB says they reveal the financial pressures that can emerge in retirement and underscore the need to prepare not only for retirement itself, but for uncertainties that may arise along the way.

For many retired South Africans, retirement is costing much more than expected.

Almost 75% of personal segment retirees say the cost of living has been higher than anticipated, while 46% say healthcare costs are significantly more than they had planned for.

Housing costs, emergency expenses and ongoing family responsibilities are also creating financial pressure, with 51% of over-60s in the FNB personal banking segment and 47% in its private banking segment saying they have been surprised by the unforeseen financial implications of family commitments.

Read: Why most South Africans won’t fully retire by their 60s

Sizwe Nxedlana, CEO of FNB Private Banking and Wealth Management, says the findings show that retirement planning needs to be built around real life, rather than an idealised vision of retirement.

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“Retirement is often imagined as a time of independence, freedom and fewer obligations, but the survey findings show that the reality of retirement is often more complicated.

“Rising food prices, medical aid, insurance, family support and unexpected costs can reshape even a carefully considered retirement plan.”

Nxedlana says a sound retirement strategy should look beyond investment growth.

“It needs to consider liquidity, future healthcare expenses, estate planning, family support, tax efficiency and the possibility that retirement may include continued work, business interests or phased income,” he added.

FNB says the findings reinforce this view, highlighting the importance of structured retirement planning.

The survey found that respondents who hold capital preservation products, such as retirement annuities and fixed deposits, are six times more likely to have a retirement plan than those who do not.

Listen to Samukelo Zwane of FNB Wealth and Investments discussing retirement readiness with Jimmy Moyaha in this SAfm Market Update with Moneyweb podcast:

You can also listen to this podcast on iono.fm here.

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