Retirement funds that help people to retire well


A poor savings culture, coupled with an increase in longevity, means that South Africans are at risk of outliving their retirement savings. This deprives the economy of essential investment funding.

People must be equipped to plan realistically for their retirement if we are to change this outcome. We believe that rewarding people for saving enough and for staying invested is key. Our business strategy of shared value draws on behavioural science and digital engagement to reward positive savings behaviour. This will help to overcome the retirement savings crisis in our country.

Many retirement fund members retire with insufficient savings

The retirement savings gap in South Africa is well documented - and alarming. Financial services providers, regulators and consultants unanimously agree that many retirement fund members retire with insufficient savings. Regulators have attempted to solve the problems but it is challenging to implement new regulations in an established industry that has many large interest groups. Furthermore, regulatory changes often underestimate the impact of behavioural biases in decision-making.

The increase in longevity compounds the problem

Life expectancy for a South African male has increased from 52.2 years in 2006 to 61.1 years in 20181. Improvements in lifestyle will extend longevity even further and thus increase the savings burden. This means that retirement savings need to last longer than before. By offering a retirement fund solution that rewards healthy living, and investing earlier and for longer, Discovery Retirement Funds is able to help close this gap.

Engaging people digitally can drive faster changes in behaviour

Behavioural economics have shown that people will save if they see the benefits of saving and are helped practically to make good decisions that are easily implemented. Delivering rewards through a shared-value business strategy and a powerful digital interface, the Discovery Retirement Funds is transforming the retirement savings industry.

The result: wealthier, healthier clients, a healthy business that can continue to invest in product development to further improve retirement outcomes, and a society that is becoming ever more economically sustainable.

Download the full insights paper here

Statistics SA, 2018 Mid-year population estimates. Available from:

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