There is still an image that 67 years is the traditional age for retirement among South Africans. But the old ways have swiftly changed. But rising costs of living, prolongation of life, and adjustments to retirement policies have forced us to engage in reality. As the current reality tells us, for some retirement at 67 is an unreachable and financially insecure dream.
The Rise of Impracticalities Surrounding a 67-year-old Retirement
The implication here is that South Africa is experiencing a generation that lives longer. Call it what you want, but considering that some people might need to save for well over 20-30 years after retirement, then the underlying problem-the “insufficiency of savings”-may easily be spotted as soon as they reach their 60s. More often than not, low incomes, periods of unemployment, and ever-increasing household expenses leave many elderly with no choice but to carry on with work, their pensions not meeting the medical, house, daily living, and otherwise out-of-control socioeconomic expenses they continue to face now.
The resulting economic pressures faced by the state effectively limited their capacity to increase their retirement benefits to a significant degree. For most citizens, their SASSA Old Age Grant serves as a support measure but often fails their every expense, particularly in urban areas.
Portion of the Working Population Working Beyond Retailment Age
As a consequence, various sections of the South African workforce are looking to work past the age of 67, either due to necessity or choice. While some may remain in formal employment, others are moving to part-time employment, entrepreneurial ventures, or consultancy. This is a change that lets the elderly earn income while keeping busy.
Employers are now slowly coming to terms with the unquestionable value derived in employing older persons. Offers of flexible working arrangements and offerings of expertise-based roles are increasingly manifesting across multiple factories, catering toward the assistance in integrating older employees into durable bi-facets of meaningful work without the physical demands of full-time jobs.
Emerging Trends of Retirement Planning
Retirement is somewhat of a lodgeable age, but more an event of monetary concern, as opposed to when to retire, South Africans have become more at home with the question, Can I afford to retire? Hence, even bigger attention on retirement annuities, preservation funds, and means to secure an income in retirement so that one can live longer on one’s savings.
Nearly all financial experts are now proposing phased retirement over a complete cessation of work-life, where an individual decreases work hours gradually, creating additional security with regard to income and helping in a gradual transformation into older life.
What this means to South Africans
By not retiring at 67, instead of life or dignity, we project a new reality, one in which flexibility, fiscal planning, and the economy play the major cast. With the right mix of planning and support, South Africans should easily acclimatize to this developing retirement environment to continue to support themselves well beyond the traditional retiring age.