South African population over 65 to double by 2050

Published on 9 November 2010

by Staff Writer

A recent international study by the Organisation for Economic Cooperation and Development on longevity funding shows that South African mortality rates are set to drop as a result of improved access to healthcare and improved disease management, as well as more savvy lifestyle choices.

According to the OECD study, the proportion of the population over 65 will double by 2050, despite the significant impact of HIV/Aids. This increase in the average age will have signficant implications for retirement planning. Metropolitan Head of Investment Products Alex Ollewagen commented that while this was good news for the economy and the person in the street, it also means that South Africans will have to save more and start saving earlier.

According to Ollewagen, "more people are likely to live beyond what they have planned for, financially… In countries like SA where defined contribution schemes are the norm, the burden of adequate retirement provision will be the responsibility of the individual member."

The lacking rate of savings among South Africans has been an ongoing concern for life insurance companies and public sector stakeholders alike.

As longevity in the country increases and the average age of citizens increases, considerations such as adequate retirement planning, life insurance and suitable medical cover will undoubtedly become an increasing priority for South Africans across all ages and walks of life.

Read more South African life insurance news here.