The most recent Old Mutual Savings & Investment Monitor found that an alarming 40% of respondents said they have no form of formal retirement savings at all, including pension/provident funds or retirement annuities.
This is according to Lizl Budhram, Head of Advice at Old Mutual Personal Finance.
"Although the majority of South Africans surveyed continue to lack confidence in the economy (with only 34% feeling confident), the latest research findings show that a third (33%) nevertheless believe that the government will take care of them when they are no longer able to take care of themselves – a statistic that has remained fairly constant," said Budhram.
What this means, in effect, is that a large number of South Africans who are currently working will not be financially free when they retire. When you include unemployed South Africans, the number is of course much higher.
Budhram points out that while economic inequality is a pressing social issue that needs to be addressed on many fronts, as an individual you can start to make a difference to your own personal finances by taking seven essential steps.