90% of South African retirees cannot maintain their standard of living once they retire. Nedbank is here to give the country a much-needed reality check.
Deloitte’s South African Investment Management Outlook for 2023 recently revealed that the country’s savings rate sits at only 0.5% and is below that of most emerging market peers.
Equally concerning was a report from Genesis Analytics in partnership with the Financial Sector Conduct Authority (FSCA) that showed that 90% of South African retirees cannot maintain the same standard of living prior to retirement. This means that many will most likely need to work even after retirement.
Add to this the fact that South Africa’s life expectancy has shown a steady increase, planning and saving becomes even more important as people now live longer.
To illustrate the implications of the above, Nedbank has set out to give South Africans a much needed #RealityCheck on why it is important to save and invest for their future. The bank took over a restaurant in the heart of the richest square mile in Africa, Sandton, and replaced their usual younger waitrons with paid actors who were past retirement age.
It was only when the bill came that unsuspecting patrons realised that they were part of a social experiment with a very simple and impactful message: ‘90% of South Africans cannot afford to retire; be part of the 10% that can.’
“Although we as a nation are taught to respect our elders, it was difficult for patrons to hide their frustration in that environment. It was only when the bill came that the penny dropped. For the patrons, this was a dining experience they were not likely to forget,” said Buli Ndlovu, Executive Head of RBB Marketing at Nedbank.
How to become part of the 10%
While South Africa’s savings and investment statistics may seem bleak, it is not all doom and gloom, and true to South Africa’s nature, there are signs of hope. The 2022 Old Mutual Savings & Investment Monitor found that 39% of South Africans have more than three months’ worth of savings, a figure that is up 3% from 2021. The report also found that 72% of people expected their financial outlook to improve over the next six months.
Key to being able to save for your future is access to the financial services support and products that speak to your life stage and needs. Nedbank offers a wide range of savings vehicles, such as the 32 Day Notice, the Electronic OptimumPlus for people over 55-year-olds and above, and the Stokvel Immediate savings account.
While growing your money through diversification and earning interest is important, the bank is also focused on delivering financial value to South Africans that help them manage their finances and make ends meet in a difficult financial context. For example, the MiGoals suite of transactional accounts provide a value stack of benefits, and this value stack can then put money back into the consumers’ pocket and can be used towards building their savings profiles.