Retirement readiness remains a significant financial challenge in South Africa, with only 6% of citizens able to afford a comfortable retirement. According to National Treasury, this reality shifts the focus from product selection to behaviour, highlighting the importance of habits and decisions that support better retirement outcomes over time. Experts emphasize that understanding the evidence behind behavioural rewards and investment outcomes is crucial for investors.
Research by Discovery Invest reveals that long-term discipline and engagement can have a meaningful impact on retirement success. The company's Head of Technical Marketing, Estee Sevenster, notes that their studies have consistently shown that behaviour plays a critical role in determining retirement outcomes. By adopting good habits, such as consistent contributions and staying invested during market uncertainty, individuals can improve their chances of achieving a secure retirement.
Traditional retirement planning often focuses on products, performance, and cost, but retirement is fundamentally an income challenge. As people live longer and remain active, the goal is to build enough capital to generate an income that supports their lifestyle throughout an extended retirement. Contributing consistently, increasing contributions as income grows, and regularly reviewing a plan can all influence the retirement income an individual may ultimately be able to generate.
Discovery Invest's data indicates a positive relationship between engagement and long-term saving behaviour. Clients who were offered the company's boost rewards, designed to encourage positive investing and engagement behaviours, invested for an average of 3.2 years longer than those who were not offered these rewards. During the 2024/2025 Economic Sentiment Indicator measurement period, clients who received boosts also made 69% more additional investments than those who did not receive boosts.
Retirement planning must also reflect the way people earn and save in modern working life, which often involves contract work, entrepreneurship, career transitions, and fluctuating income. Discovery Invest's approach focuses on helping clients maintain discipline, manage complexity, and sustain income in retirement. The company's expanded Retirement Annuity range supports a simpler, more flexible approach to retirement planning.
Financial advisers play a crucial role in helping individuals align their retirement strategy with their long-term goals. To guide their next conversation with an adviser, individuals can consider five key questions: Am I contributing enough towards my retirement? Have my contributions kept pace with my income growth? Am I staying invested during periods of market uncertainty? Does my current solution still reflect my lifestyle and financial circumstances? Am I receiving advice that helps me stay focused on my long-term goals?
Helping clients stay invested, adapt to changing circumstances, and build sustainable retirement income remains at the heart of Discovery Invest's approach. This commitment was recently recognised in the 2026/2027 ASK AFRICA Orange Index, where Discovery Invest was named the Customer Experience Winner in the Investment Policies and Savings Industry. According to Sevenster, retirement success is often shaped by the small decisions made consistently over time, and well-designed solutions combined with trusted advice can help individuals deal with uncertainty and improve their chances of retiring with financial confidence.
Key points
- Consistent contributions and long-term discipline can improve retirement readiness in South Africa.
- Only 6% of South Africans can afford to retire comfortably.
- Behaviour plays a critical role in determining retirement outcomes, with good habits such as consistent contributions and staying invested during market uncertainty improving chances of a secure retirement.
