January 2024
03Jan

Huge risks for pensions in South Africa

South Africa will have a new two-pot retirement system by September this year, but there are several risks facing members and the industry. As the name suggests, the two-pot retirement system will have two pots – savings and retirement savings. The savings pot will hold a maximum of one-third of all retirement savings and will be accessible prior to retirement. The retirement pot will hold a minimum of two-thirds of all retirement savings and will only be accessible at retirement. A third vested...

January 3, 2024
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December 2023
05Dec

Yet another twist for South Africa’s new pension system

The standing committee on Finance has once again changed the implementation date of the two-pot retirement system. In the new retirement system, up to one-third of all retirement savings will be placed into a “savings pot”, which will be accessible before retirement. A minimum of two-thirds of a pension fund will then be placed into a “retirement fund”, which can only be accessible at retirement. This is designed to ensure that South Africans can access some funds in case of emergency while...

December 5, 2023
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November 2023
06Nov

South Africa: Potential Major Changes Affecting Occupational Retirement Plans

The South Africa government has proposed that changes to the two-pot retirement system, which gives workers access to pension funds before retirement, be delayed by a year. Employer Action Code: Act Draft legislation to amend South Africa's Income Tax Act and the Pension Funds Act would allow members of occupational retirement plans to access part of their future retirement accruals during employment, with the remainder accessible only upon retirement or death (known as the "two-pot" system). Existing payout rules would still...

November 6, 2023
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October 2023
05Oct

South Africa. Some pensioners are still queuing for hours for their grants

Pensioners still had to wait hours to collect their grants at some places in Cape Town, though on the whole the payments seemed to be going more smoothly. Last month, thousands of social grant beneficiaries did not receive their money on time due to a technical glitch with PostBank. When GroundUp arrived at noon on Tuesday, about 80 people were waiting at the Gatesville Post Office to receive their pension. Elizabeth Fredericks, 75, waited for five hours before receiving her grant. She arrived...

October 5, 2023
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September 2023
22Sep

The Future of Global Retirement

By Andrew Evans & Will Wynne Smart is a world-leading retirement technology provider. Our mission is to transform retirement, savings and financial wellbeing, across all generations, around the world. Launched in 2015, our technology platform – Keystone – serves the needs of retirement savers globally, and we are now active on four continents. Keystone is specifically designed to help governments and financial services organisations to serve their citizens' and customers' retirement saving and spending needs. Smart’s team of engineers, researchers and user...

September 22, 2023
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15Sep

Survey Reveals That South Africans Fear Retirement More Than Death

The survey, conducted among over 1900 South African consumers aged between 25 and 65 years, paints a picture of apprehension and challenges surrounding retirement amongst the country’s citizens. It also sheds light on the significant fears and challenges people face right now in securing savings for their retirement – with prevalent concerns being the high cost of living, unemployment, and personal debt. This concurs with findings from the 2023 Old Mutual Savings and Investment Survey (OMSIM) that show that retirement does...

September 15, 2023
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August 2023
22Aug

South Africa. Women struggle to retire as early or as securely as men

Longevity literacy is critical to help women live confidently and securely when it comes to their wind-down years. South Africa’s gender pension gap sits at 26%, reflecting the average difference in retirement income between men and women. Farzana Botha, segment manager at Sanlam Risk and Savings, said that often, women cannot afford to retire as early or as comfortably as men. She believes that turning this around should be a national imperative. Botha said: “A multitude of factors contribute to...

August 22, 2023
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18Aug

South Africa. Pay back the money: Eskom employees lose pension payouts, and cars after R2.6 million fraud backfires

The Nelspruit Specialised Commercial Crime Court has issued a restraining order against former Eskom employees and their relatives after they allegedly defrauded Eskom of close to R3 million. Mpumalanga spokesperson for the Hawks, Captain Dineo Lucy Sekgotodi, said the order was gratified against Nwabisa Ngxola, Cinderella Moropane, Edward Moropane, and Jeffrey Moropane. It is alleged that during the period between March 2012 and May 2013, Ngxola and Cinderella Moropane were employed at Eskom. The former was responsible for capturing payments and...

August 18, 2023
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07Aug

Warning over new retirement system in South Africa

Old Mutual warns that the new two-pot retirement system, which will become operational next year, could negatively impact the entire purpose of retirement funds. From 1 March 2024, South Africans will be able to put their savings into two separate retirement pots. Up to one-third of all retirement contributions will go into a “savings pot”, which will be accessible once a year. A more standard “retirement pot” will receive at least two-thirds of the contributions made after 1 March 2024, which will...

August 7, 2023
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01Aug

South Africa’s EPPF builds resilience in governance-focused strategy

South Africa’s EPPF wants to increase its allocation to private equity and venture capital to help ride out volatility at home in a strategy where governance and stakeholder engagement is central. CEO Shafeeq Abrahams explains. South Africa’s R190 billion ($10 billion) Eskom Pension and Provident Fund (EPPF) the retirement plan for employees of the country’s electricity utility, is currently building resilience into the portfolio, seeking greater diversification through an increased allocation to alternatives and overseas investments. Elsewhere, EPPF is reviewing...

August 1, 2023
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