Independent research has revealed that South African retirees are working into their retirement in order to supplement their income. Due to the instability of the markets, fluctuating interest rates and inflation, many retirees are remaining in the work force for stability and financial security.
Interestingly, 36% of respondents had opted to start their own business as a means of earning an income. According to the research by Rainmaker Marketing, 18% of the country’s population is aged over 60 and 8% of KwaZulu-Natal’s population is 60 years or older. By 2050 60% of South Africa’s population will be 60 years old plus.
“By as early as 2024, 55% of the global workforce will be older than 55. What exacerbates this issue is that globally life expectancy is rising – the Boomer Generation (formerly known as The Baby Boomers), is the retiree generation of today with an expected increase in life expectancy of 10 to 20 years,” said Stefan Botha Director of Rainmaker Marketing.
He said in just 19 years, global life expectancy has increased by almost a decade.
“It seems that unless you have factored in the costs of living for today 30 years ago, you may not have been able to gather up enough to support your retirement, especially if you understand that you’re going to live longer than your parents,” he said.
Botha said 69% of KwaZulu-Natal’s retirement market is aged between 51 and 70 years old, demonstrating that the retirement market is made up of a vast group of adults spanning more a generation.
He said there will be more people of retirement age than ever in the coming years and there will be an incidental increase in demand for adequate retirement living options.
“This coupled with the fact that people are having to find ways to supplement their income means that the future of retirement living will have to support this. Retirement estates have to offer the opportunity for residents to comfortably work from home, or at least be able to access co-working spaces nearby,” he said.
The meaning of retirement has changed over the last decade, and the label certainly does not begin to encompass the needs and wants of this burgeoning market.
Botha said property buying decisions are in part informed by one’s financial standing and one’s lifestyle preferences.
“Retirement property investment trends lean towards the Cape or other coastal locations, while Rainmaker Marketing’s independent research showed that 36% of the market show a preference for greater Ballito in KwaZulu-Natal.
“The global Covid-19 epidemic and the national lockdown has resulted in a huge shift in people’s priorities with a move to estates which can fulfil people’s lifestyle needs in a safe and controlled environment. People are looking at estates in upcoming areas like Shaka’s Rock and the demand for KZN North Coast property is robust and ever-increasing. This demand will continue to grow as development moves northwards and more retirement-focused estates emerge,” Botha said.