In the latest episode of the Retirement Reimagined series, we aim to understand why so many people are not saving for retirement. The results from the FNB Retirement Survey suggest that it is not just financial constraints.

Host Maya Fisher-French is joined by Bheki Mkhize, CEO of FNB Wealth and Investments, and Renzi Thirumalai, Chief Investment Officer of FNB Wealth and Investments, to unpack the survey findings, which include the immense financial pressure many individuals experience. High costs of living, such as escalating grocery bills and rising transport costs, are squeezing disposable income to the point where saving for retirement feels impossible. 

But there are also the psychological aspects of retirement planning. Humans are inherently wired to seek immediate gratification, making it challenging to prioritise long-term goals like retirement. Many face the dilemma of balancing enjoying today and saving for tomorrow. The discussion unveils how this mindset can lead to procrastination, with individuals believing they have ample time to prepare for retirement only to find themselves caught off guard as they approach their golden years.

Another significant barrier to effective retirement planning is the lack of financial literacy and knowledge about available products. Many participants in the survey reported feeling lost when it comes to understanding their options and where to turn for trustworthy advice. This gap in knowledge can lead to poor decision-making, such as cashing in retirement funds prematurely or opting for low-return savings options out of fear of market fluctuations.

The discussion highlights ways people can start investing for retirement, including automating their savings with regular increases in contributions to keep pace with inflation and rising living costs.

 Whether it's seeking guidance from financial advisors, understanding the intricacies of investment products, or simply starting to save, the message is clear: the sooner you start, the better prepared you'll be for retirement.

 

For more information on the retirement survey, click this link.