Are you ready for retirement? Old Mutual Corporation devised a social experiment to demonstrate how well-prepared South Africans are for retirement; only 6% of people are actually ready.
Are you ready for retirement? Most South Africans are not – in fact only about 6% have sufficient savings to maintain their income once they stop working. Old Mutual research indicates that employees need at least 10 times their annual salary to replace their income at the point of retirement.
Old Mutual Corporate shared their social experiment to demonstrate how well-prepared South Africans are for retirement. The exercise recorded eight South African families from a cross-section of society who were asked to fill a shopping trolley with all the groceries they needed in a month.
What they did not know was that it was a simulation of shopping when they retired, and prices were adjusted to what they would be when the breadwinner retires. The findings were a rude awakening to not only the participants but for the broader South African society. Some families were over budget – ranging between 100% and 800%.
To watch the social experiment, visit www.oldmutual.co.za/superfundpower.