This is the fourth article in a nine-part series that summarises findings from Just Retirement Insights 2024, a tracking study conducted by retirement income specialist, Just SA.
Just Retirement Insights 2024 asked respondents to rate their level of confidence that their money, despite inflation will cover their monthly expenses in retirement even if they live until the age of 100.
Answers to this question showed confidence levels much higher than in previous years – 23% were “Really Confident” and 40% were “Confident”.
This could indicate that people have recovered somewhat from the adverse economic effects of the Covid pandemic years and now have plans in place to ensure they have a sustainable retirement income. However, it could also indicate an unjustified level of self-confidence in retirement planning.
The tracking study reveals that over the years, average savings of respondents have gradually increased but not sufficiently. People should ideally have 25 times’ their annual income saved for a sustainable income in retirement, but the survey results show that retirees are falling about 40% short of this target.
The findings also show 80% of respondents plan to use their retirement savings to pay off debts such as credit cards and mortgages. This is disconcerting given that most haven’t yet saved enough to generate a sustainable income for life.
Equally disconcerting is the fact that many respondents underestimate their life expectancy, a significant factor in retirement income planning. We will delve into this in next week’s article.
Read the full report here: https://retirementinsights.co.za/
PERSONAL FINANCE