The retirement reality: Planning challenges and behaviour of the self-employed

Background: The retirement system in South Africa faces numerous challenges, particularly with safeguarding and managing retirement funds. Self-employed individuals (SEIs) do not have access to occupational funds, encounter unique challenges and circumstances and experience difficulties in retirement planning. Aim: The objectives are to examine SEIs’ perceptions, attitudes and behaviours towards retirement planning, focusing on their awareness of retirement planning strategies, assess their approaches to saving for the future, and identify key obstacles and hurdles that SEIs encounter when planning retirement. Setting: This study investigates the retirement planning difficulties and behaviours of SEIs in South Africa, specifically within a defined age range and income bracket. Methods: This qualitative study, employing a constructivist perspective and semi-structured interviews conducted via Microsoft Teams, explored the retirement planning of South African SEIs. ATLAS.ti was used to analyse interview data, inductively generating insights to refine retirement planning theories. Results: Self-employed individuals encounter considerable obstacles in retirement planning, attributed to variables such as unstable income, restricted access to retirement products and financial illiteracy. Most participants indicated difficulties in maintaining consistent savings and prioritising long-term retirement objectives. Conclusion: The challenges experienced may result in insufficient funds and a diminished quality of life after retirement. To resolve these challenges, it is essential to offer customised financial education and assistance specifically geared to SEIs. Contribution: This research addresses a critical literature deficiency by providing practical insights into South African self-employed retirement planning. Its findings are relevant for policymakers and financial entities.