Retirement Insights
By Sizwe Nxedlana
This first emerged strongly in our 2025 research, which highlighted a clear disconnect between what South Africans expected retirement to be and what many retirees were actually experiencing. The responses of over-60s showed that retirement was not only a financial adjustment, it was also an emotional and practical one. Many retirees were working longer than planned, drawing on savings earlier than expected, managing unexpected expenses, or continuing to support family members. The findings provided a valuable lesson that retirement planning cannot merely be built around an idealised end state - it has to make room for real life. The 2026 research findings reinforce this. Among retirees, 74% say the cost of living has been higher than they expected in retirement. Unsurprisingly, healthcare costs have also emerged as a major pressure, with 46% of retirees saying medical expenses have been higher than expected. Interestingly, among more affluent retirees, that figure rises to 61%. For any retiree, these are not small surprises. They are cost shocks that can reshape even a carefully considered retirement plan.
Family obligations add another layer of complexity. Many South Africans want to retire without depending on their children, while also hoping that their children will not need to depend on them. The research shows how difficult this can be. Respondents highlight that adult children, grandchildren, elderly parents and broader family commitments continue to place financial demands on people well into retirement. In the 2026 survey, 47% of over-60s in the Private Banking segment said they had been surprised by the unforeseen financial implications of family commitments. While these are challenges that all South Africans need to be aware of, they shouldn't make the retirement goal smaller. They need to inform plans that are more realistic, more flexible and more resilient. For one, a sound retirement strategy needs to consider not only investment growth, but also liquidity, future healthcare expenses, estate planning, family support, tax efficiency and the possibility that retirement may need to include continued work, business interests or phased income.
What is becoming abundantly clear from these FNB Retirement Insights Surveys is that true financial freedom in retirement is not just the absence of work - it is the ability to absorb change without losing control of the life you have planned. So, as banks, retirement funds, and financial advisers, the more honestly we help South Africans plan for all these realities of retirement - not just their pre-retirement investment performance - the better their chances of preserving their independence, protecting their families and retiring with confidence and peace of mind.
