Mary-ann Ebigo, Melany Lotter
Abstract
Black tax, a deeply debated and pervasive social phenomenon, significantly shapes the financial realities of countless South Africans. The expectation or obligation to provide financial support to extended relatives can inhibit savings intended for retirement purposes. This study investigates how individuals navigate through retirement planning amidst black tax responsibilities. This qualitative, exploratory study utilised semi-structured interviews to gather data from 12 participants. Participants were selected based on specific criteria: residing in Gauteng, South Africa; earning an income; contributing to black tax; and having financial dependents. The research employed inductive reasoning and thematic analysis for data interpretation. The findings suggest that black tax significantly strains personal finances, impeding personal goals. The significant role in supporting dependents and prioritising black tax leads to widespread dissatisfaction with voluntary savings and retirement planning. A considerable portion lacks a retirement plan, often due to perceived resource limitations or low priority, emphasising the critical need for early planning and professional financial guidance to secure retirement. This study offers theoretical contributions by deepening the understanding of black tax’s role in personal finances, while providing practical insights for financial planning, specifically retirement planning and policy development in South Africa.