Will this be the generation to redefine retirement?
Members of Generation X – those born between 1965 and 1979 – are hitting middle age and are slowly beginning to take over the leadership positions in business and society. What experiences moulded this generation and will continue to affect their attitude towards life, work and retirement?
GenXers grew up during a time of major social and technological change. The 80s and early 90s were a turbulent and sometimes violent time in South Africa during the struggle for freedom. This generation experienced changes in family composition with HIV/Aids, urbanisation and divorce altering traditional family relationships and support networks.
As a result, many see this generation as more autonomous and self-reliant than their parents. However, financial family obligations still weigh heavily on many South Africans, especially those who have managed to achieve greater financial success than previous generations.
This generation is also unlike their parents when it comes to retirement savings. For some families, it will be the first time that the elderly will not need to rely on the old-age state pension. For others, the type of private pension they can look forward to is very different to that of their parents. When GenXers entered the workforce, traditional defined benefit pension funds were making way for newer defined contribution retirement funds. This places South African GenXers in the unenviable position of being a litmus test for how well these new defined contribution funds can deliver on members’ expectations.
While retirement has been off the radar for most GenXers, it is now becoming visible on the horizon and retirement reality will start to bite during the next decade. GenXers will need to face the fact that the responsibility and risk of funding for retirement rests squarely on their shoulders.
This story is from the 13 July 2017 edition of Finweek English.
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This story is from the 13 July 2017 edition of Finweek English.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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