The role of robo-advisors in digitally transforming retirement planning in South Africa: a literature review

In South Africa, only 6% of the population is expected to retire with financial independence, and the implementation of the Two-Pot retirement system in September 2024 exacerbates the retirement savings dilemma, underscoring an urgent necessity for creative retirement planning solutions. This article thoroughly delineates the present status of research into the utilisation of Robo-advisors in retirement planning. This analysis evaluates the appropriateness and feasibility of employing Robo-advisors to enhance and democratise digital financial advice within the context of a developing economy like South Africa, particularly through the adoption of the Two-Pot retirement scheme. A comprehensive literature analysis was conducted utilising the Emerald Insight, ProQuest, and Scopus databases to find peer-reviewed journal articles published between 2019 and 2024. These articles critically assessed the function of Robo-advisors in democratising financial advice, providing a cost-efficient, accessible, and perhaps less biassed alternative to conventional advising services. The study highlights the imperative for future research to guarantee the ethical, transparent, and controlled implementation of robo-advisory services in South Africa. The literature analysis delineates five pertinent study themes: emerging literature on Robo-advisors, behavioural dimensions, risk assessment, regulatory frameworks, and Robo-advisor characteristics pertinent to the South African retirement context, considering the Two-Pot retirement system.The report delineates potential research opportunities for each highlighted issue to aid scholars in performing empirical investigations aimed at optimising retirement planning in South Africa through the use of Robo-advisors. Key Words:retirement planning, Robo-advisors, digital financial advice, financial literacy, South Africa