A Review of The Factors Influencing Retirement Funding Adequacy: A South African Perspective

This paper reviews literature on the factors influencing the retirement funding adequacy of South Africans. Numerous studies have looked into the factors that play a role in ensuring individuals reach retirement age with adequate retirement provisions, however, few studies have addressed this in the South African context. With the little academic research done on the factors influencing retirement funding adequacy among South Africans, it is important to thoroughly review the literature to examine which factors are applicable in determining the retirement funding adequacy of South Africans. Based on the literature review, a hypothetical model was proposed by the researchers. According to this model, an individual’s retirement funding adequacy is possibly influenced by his/her financial literacy, the role of the financial planner as well as the individual’s family support structure and health status. The influence of a mediating variable (retirement planning) is also indicated. This paper ultimately suggests that the hypothetical model be tested in a follow-up quantitative study, as this may provide helpful insights to assist individuals and financial institutions to understand the factors that influence the adequacy of retirement funding, especially in South Africa.