South Africans are increasingly working beyond retirement age, with many working in the “Grey Zone.”
For decades, retirement was relatively straightforward for South Africans, with many retiring at 60.
This is now changing amid global population trends, new career patterns and shifting attitudes to work that are disrupting one of the most established ideas in personal finance.
Retirement is now becoming a transition, not a finish line.
“The question is no longer ‘when will you retire?’ but ‘what does retirement even mean anymore?” said Craig Lawrence, Financial Planner at BDO Wealth.
The space between full-time employment and complete retirement, with what researchers have called the “Grey Zone,” is now the new normal.
For 2026, BDO Wealth launched consultancies, transforming hobbies into income streams and embracing portfolio careers that blend passion with purpose.
These moves are not necessarily driven by financial necessity, as research shows that people are resisting the traditional retirement age.
Many are skipping full retirement as it can result in a loss of identity, meaningful work and social connection.
The Grey Zone is thus a solution, with many having continued engagement without the pressure of a nine-to-five workday.
Longevity is also rewriting the rulebook, with global life expectancy continuing to rise.
By 2030, one in six people worldwide is expected to be over 60 – a demographic shift that’s already forcing financial institutions and governments to rethink retirement frameworks.
Thus, the standard three-stage life model of learn, earn and retire is becoming obsolete, and being replaced by an approach where people cycle between learning, earning and transitioning.
“Retirement isn’t stopping anymore; it’s shifting, evolving, and becoming deeply personal,” said BDO Wealth.
“The Grey Zone is expanding, careers are multiplying, and longevity is creating both opportunities and challenges.”
“The winners in this new landscape will be those who plan proactively, preserve strategically, and view financial guidance as a way for navigating life’s transitions and money moments.”
Warning for Gen Z
On the other end of the scale, Gen Z workers are now starting to get well into their careers, and the predictions over the work choices are coming true.
Many are seeing multiple job changes, diverse income streams and non-linear career paths that are not the norm.
The average young professional has already had several employers, and each transition represents opportunity and risk.
The risk is that every job change brings temptation to cash out retirement savings, leaving many to ignore the compound growth lost from early withdrawals.
The amounts lost from this are staggering. For a 28-year-old with R50,000 in retirement funding, they may be tempted to cash out, as the tax of R4,000 seems small.
However, if those funds were invested and grew at 8% a year until age 65, the amount would reach roughly R860,000, 17 times the original value. This would be lost via a withdrawal.
