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Business · South Africa

Retirement Funds Show Weak Long-Term Returns Despite 2025 Boost

Moneyweb · 2026/04/09

Summary

Alexforbes, a leading South African financial services company, has shared important insights about retirement fund returns. While the year 2025 is expected to show strong investment performance, this good year is hiding a bigger problem. Over the past 10 years, the overall returns on retirement funds have been quite average, described as 'pedestrian'. This means that if you look beyond the short-term good results, retirement investments have not grown as much as many people had hoped. For South Africans planning for their retirement, this signals that relying on occasional strong years may not be enough. Instead, it is important to review your retirement strategy regularly and consider multiple options to improve your long-term savings. Alexforbes' message encourages individuals to stay focused on consistent returns over many years rather than expecting big gains every year.

OnABudget takeaway: South Africans should not be fooled by one good year in retirement returns. It’s important to plan carefully and look for steady growth to secure a better retirement. Small business owners and investors should also be cautious and seek advice to make long-term financial decisions.

Read the original article on Moneyweb