At the heart of every policy proposal, reform effort, and employee benefit recommendation in this edition lies our passion for the individuals whose lives we are ultimately impacting: hard-working South Africans. Every day, they are working not just to secure a dignified retirement for the future but to provide for their families today. It’s for them that we advocate for further improvements to our policy environment, and it’s for them that we call on all stakeholders to use every lever at their disposal to improve long-term outcomes. 

But as we strengthen our system, we are mindful that retirement is more than just a financial milestone. It’s a deeply personal life transition. Along with the change in how people spend their time, there are changes in how they see themselves, their purpose, and their place in the world. 

The traditional retirement model – work for 40 years, retire at 65, then quietly fade into the background – was designed for a different era. Today’s reality is very different: people are living longer, staying healthier, and craving meaning that extends far beyond the boundaries of formal employment.

This calls for a fundamental shift in how we think about the stages of our lives. The question is not just about how long we might stay in formal employment, but about how we find meaning and purpose – while also securing our financial future. It is not simply about delaying retirement but about reimagining it entirely. 

The financial imperative

The numbers tell a stark story. Old Mutual Corporate numbers show that many South Africans haven’t been able to save enough to fund retirements that may last 25 to 30 years. This is not due to a lack of will but is a reflection of economic realities: inter-generational dependencies, interrupted careers, informal employment, caregiving responsibilities, low wages, access to savings vehicles, and historically low preservation rates. The result is a growing risk of financial vulnerability that affects not only individuals but also households, communities, and the broader economy.

Simply put, most South Africans cannot afford to retire at 65. Many will realistically need to work for another decade or more to achieve basic financial security. But rather than viewing this as a burden, we should see it as an opportunity to redefine what productive ageing looks like.

The longevity revolution

South Africa is experiencing its own version of the global longevity revolution. According to Statistics South Africa, approximately five million South Africans were over 60 in 2022 – about 9% of our population. By 2050, this figure is expected to reach 16%. While not on the scale of Europe’s ageing population, we’re witnessing demographic change that demands new thinking about how we structure our later years.

The International Monetary Fund notes that many people reaching 70 today are healthier than 53-year-olds were several decades ago. The focus is no longer only on how long we live, but also on how well we live – with the capacity for continued contribution well beyond traditional retirement ages.

A psychological shift is therefore required, and not only because recent research has shown that as many as one in four people suffer from depression when entering retirement, largely due to a lack of preparation. The psychological transition from productive contributor to passive recipient can be devastating for those whose identities have been deeply tied to their work. 

But we also need to shift our thinking from the way retirement has long been regarded – as a time in the future when we can finally do what we want to do. Because attitudes towards retirement are shifting. 

A newly commissioned study by Old Mutual Corporate, for example, revealed that there are some interesting generational differences in retirement expectations. While Baby Boomers continue to aim for retirement between 63 and 65, many express regret over missed opportunities and feel unprepared. Generation X shows similar financial anxiety, citing lack of employer guidance. Millennials desire earlier retirement, but face the reality of financial constraints, while Generation Z optimistically plans for early retirement despite uncertain economic conditions.

Across all generations, anxiety persists about whether savings will be sufficient. This reinforces findings from a 2018 study published in the South African Actuarial Journal showing that 82% of employees are willing to work beyond official retirement age, if necessary, especially as retirement savings fall short and living costs rise.

Global perspectives on extended working lives

South Africa isn’t alone in grappling with these challenges. The OECD reports that approximately 60% of member countries plan to raise statutory retirement ages, directly linking this trend to longer life expectancy and pension system sustainability.

There’s another age consideration too: a persistent concern that extended working lives mean older workers crowd out opportunities for youth, particularly relevant given South Africa’s alarmingly high youth unemployment figures. 

However, international evidence consistently challenges this assumption. The World Bank’s comprehensive analysis shows a clear trend: countries that support employment for older workers also tend to see stronger youth employment. 

The new world of work creates opportunities

The evolving nature of work itself creates unprecedented opportunities for extended careers. Skills shortages across multiple sectors mean experienced workers are increasingly valuable. Flexible work arrangements, accelerated by Covid-19, now allow for gradual transitions rather than abrupt endings to productive working life.

Our research shows that 50% of South Africans under 60 expect to work into retirement, reflecting a growing cultural shift towards rewirement. This isn’t just about financial necessity – it’s about finding purpose and maintaining engagement in later life.

In South Africa, active participation in the economy and society can take many forms beyond traditional employment. It might mean starting a small business in a local community, mentoring young people, pursuing flexible or portfolio work, or contributing to national priorities like education, healthcare, and public service.

These forms of engagement are critical to South Africa’s economic recovery and long-term resilience. As outlined in Prof Adrian Saville’s economic roadmap for SA (page 10), education and healthcare are key pillars for national growth, deeply linked to productivity, human capital, and inclusive development. When South Africans participate in these areas by supporting schools, volunteering in clinics, or engaging in public programmes, they’re contributing to the economic engine of the country.

This broader view of participation recognises that the evolving world of work doesn’t just reshape individual careers – it can reshape the nation. Enabling this kind of contribution at scale strengthens communities, drives job creation, and supports the structural transformation South Africa needs to unlock meaningful, sustainable growth.

The real impact of rewirement

Rewirement has the potential to drive lasting, wide-ranging benefits for individuals and the country as a whole. These include:

• Financial resilience:
  Active participation in society, whether through continued work, entrepreneurship, trade, or public and community service, is one of the most powerful enablers of better personal outcomes. Earning an income for longer, in any form, helps individuals build assets, grow savings, and sustain themselves without drawing too early on retirement funds. Real impact lies in designing systems that reflect South Africa’s realities, in supporting diverse and meaningful ways for people to remain engaged in the economy and contribute to society across all life stages.”
• Purpose and identity:
  Work provides more than income; it offers structure, social connection, and identity. Rewirement acknowledges that these needs don’t disappear at 65. It creates pathways for continued contribution through flexible employment, consulting, mentoring, or community engagement. 
• National impact:
  Rewirement supports three of South Africa’s most urgent economic priorities, as noted by Prof Adrian Saville: building a stronger savings and investment culture, enabling job-creating growth, and fostering effective public participation in the economy. When individuals remain active – through work, enterprise, or service – they earn for longer, reduce early drawdowns, and contribute meaningfully to household resilience and national productivity. With the right systems in place, these efforts scale into national impact. Retirement funds can serve as investment engines, channelling long-term capital into infrastructure, renewable energy, and inclusive development – as demonstrated by Australia’s superannuation system, which has become a powerful driver of national growth.

Setting the intention

The possibilities are seemingly endless: some professionals transition to consulting roles, while others pursue entirely new second careers. Many choose flexible arrangements within their existing organisations, and some become entrepreneurs, finally pursuing business ideas they’ve been thinking about for years. Still others engage in meaningful volunteer work, board positions, or community leadership roles. The common thread is the intentional choice to remain productive, engaged, and contributing members of society.

So, how do we get there? Well, it requires a systemic change, with co-ordinated action across multiple fronts:

• Courageous policy: Bold reforms must support improvement in member outcomes and experience, and design incentives for longer participation in the economy. Policies should be adaptive, inclusive, and grounded in the lived realities of our people. Reforms cannot simply be replicated; they must be re-imagined for our collective future, improving coverage, promoting preservation, and enhancing adequacy.
• Industry innovation: Retirement funds must evolve from passive custodians to active life partners. This includes disrupting outdated models and continuously pushing boundaries in the systems, tools, advice, and services that support rewirement journeys.
• Cultural change: We must challenge our own poor savings behaviour and ageist mindsets that define older people as obsolete. Need and purpose do not retire. The blend of human and technological resources into the future will define a new world of work and era of existence, and this design needs to support and include all parts and ages within our society.
• Member-centricity: The real revolution lies in making the right decisions for the future of South Africans. Our members are telling us what they want and need. They want meaning, value, and options. They need an income for life. We must build for them.

A vision for the future

The conversation about rewirement is, ultimately, about recognising human potential at every age. It’s about creating systems that honour contribution beyond traditional boundaries and ensure that longer lives lead not to longer dependency, but to shared prosperity.

The evidence is clear that productive participation in the economy and society benefits individuals, families, and society. The question isn’t whether or not we should embrace rewirement, but how quickly we can build the infrastructure to support it.

For policymakers, this represents an opportunity to create sustainable economic and social protection systems. For employers, it’s a chance to harness experience and wisdom while addressing skills shortages. For individuals, it’s the promise of financial security paired with continued purpose.

As we stand at this crossroads, we have a choice: cling to an outdated model that serves neither our demographics nor our economy or embrace rewirement as a pathway to a more resilient, inclusive future. The time for that choice is now, because the future of retirement isn’t just about working longer; it’s about living better

*This article originally appeared in the Old Mutual Mindspace Thought Leaders Forum special issue. To read more, click here.