June 2020

12Jun

South African Individual Retirement Savings: An Analysis of the Social Factors

By Gizelle Willows This study's primary aim is to determine whether members of a South African tertiary institution's retirement fund are en route to have sufficient retirement savings. Secondly, the results are analysed between different social factors namely: age, gender, race, education level, marital status, and cost of employment. Survey data and information received directly from the retirement fund were used as inputs in a customised model. This method was unique to this study, that is, it was able...

June 12, 2020
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05Jun

South Africa. Investors could be hit by uneven stock markets

Investors could be hit by uneven global stock markets. The warning comes as stock markets around the world extend their remarkable rallies despite a continuing global public health emergency, economic downturns and financial upheaval, political uncertainty and widespread social unrest. Wall Street is expected to open higher again on Tuesday – with the benchmark S&P500 less than 10 per cent from its all-time high. In the Asia-Pacific region and across Europe, all major indices made gains. Global...

June 5, 2020
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03Jun

South Africa’s Central Bank Rules Out Financing Government

South Africa’s central bank ruled out helping the government fund its runaway budget deficit by paying for its spending through loans, as the ruling party debates using the institution to fund infrastructure and development. “We do not think it is prudent to finance government directly,” Kuben Naidoo, a Reserve Bank deputy governor, said on a conference call hosted by money manager Ninety One. “It would increase inflation risks. It would blur the lines between an independent central bank...

June 3, 2020
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May 2020

27May

South Africa. Odds stacked against investment industry as Covid-19 hits pension contributions

The investment industry could face one of its toughest years to date in 2020 as people are losing their jobs and cashing out their pensions to survive, while companies are giving those who remain employed options to save less for retirement. One of SA's biggest asset managers, Coronation Fund Managers, said while it is still early to assess the impact of coronavirus-related job losses on the industry, it is safe to expect that less money will be coming in....

May 27, 2020
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April 2020
30Apr

South Africa: The Rules Around Pensions in a Time of Mass Job Losses

In addition to the stress faced by employees who might lose their jobs during the crisis engendered by Covid-19, there is the added concern of whether their pension contributions will remain safe or fairly managed. The Financial Services Conduct Authority (FSCA) warned, at the end of March, that many distressed employers might default on their employees’ contributions to retirement funds, as a direct consequence of Covid-19’s impact on businesses and the economy. While the FSCA reminded the public that...

April 30, 2020
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30Apr

South Africa: The Rules Around Pensions in a Time of Mass Job Losses

In addition to the stress faced by employees who might lose their jobs during the crisis engendered by Covid-19, there is the added concern of whether their pension contributions will remain safe or fairly managed. The Financial Services Conduct Authority (FSCA) warned, at the end of March, that many distressed employers might default on their employees' contributions to retirement funds, as a direct consequence of Covid-19's impact on businesses and the economy. While the FSCA reminded the public that...

April 30, 2020
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23Apr

South Africa. The dichotomy between what pension scheme members want and what they get

The one thing an investment linked living annuity (also known as a living annuity, or illas) does not do is give pensioners a secure income flow. Few pensioners are likely to be financially secure until death. The advent of Covid-19 and the junking of South Africa’s debt makes it far worse when share prices and dividend payments drop. Most living annuity pensioners had already received a serious body blow even before the virus and the downgrade of South...

April 23, 2020
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07Apr

Social protection responses to the COVID-19 lockdown in South Africa

Poor and vulnerable South Africans, including domestic, farm, service sector, and self-employed workers as well as children from poor families, face a double shock. COVID-19 is a major health risk that has already claimed tens of thousands of lives worldwide and is starting to claim lives in South Africa. Social distancing and self-isolation are necessary to slow the spread of the virus, and the 21-day lockdown is designed to “flatten the curve”. But the lockdown itself has consequences that...

April 7, 2020
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March 2020

30Mar

South Africa. Use pension funds for coronavirus relief efforts – unions

South Africa’s biggest labor-union federation and a key political ally of president Cyril Ramaphosa is pushing the government to tap state institutions for a stimulus plan to combat the fallout from the coronavirus outbreak. The Congress of South African Trade Unions, which represents about 1.8 million workers ranging from miners to teachers, wants state companies such as the Public Investment Corp, which oversees government pensions, to provide relief to hard-hit industries including hospitality, manufacturing and mining. It’s also seeking...

March 30, 2020
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13Mar

Inquiry Alleges ‘Substantial Impropriety’ at South Africa’s Public Investment Corp.

A judicial inquiry in South Africa recommended sweeping changes to laws governing Africa’s biggest fund manager after it found senior management, including former Chief Executive Officer Dan Matjila, flouted internal procedures. The investigation, led by retired Judge Lex Mpati, concluded there had been “substantial impropriety” at the state-owned Public Investment Corp., which manages 2.13 trilllion rand ($130 billion) of state-employee pension funds. It found that the board had acted as a “rubber stamp” for Matjila, who failed to disclose...

March 13, 2020
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