A whopping 40% of working South Africans do not contribute to a pension or provident fund or a retirement annuity fund, and a third of working South Africans rely on the government to take care of them in their old age. These alarming statistics were highlighted in the recent Old Mutual Savings and Investment Monitor. Lynette Nicholson, Old Mutual's research manager, says the percentage of people who depend on the government - 32% - has not changed much in the past eight years. The survey reveals that the percentage of working South Africans who contribute to pension and provident funds is around 50%, and this percentage has remained static since 2010. The percentage of South Africans who used retirement annuities over the past year is 27%, down from 30% the year prior. Furthermore, one in three baby boomers - people born before 1965 - have no formal retirement fund savings, which means they have not contributed to a pension, provident or retirement annuity fund, she says. South Afr...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.