November 2022
23Nov

South Africa’s government workers march across major cities for higher pay

Thousands of South African government workers took part in nationwide demonstrations on Tuesday (Nov 22) to demand a 10% increase in their salaries. Negotiations between public sector unions and the government are deadlocked. The government is resolved to unilaterally implement a 3% pay hike, which hasn't satisfied the unions. In Pretoria, workers downed tools and marched to the offices of the national treasury to submit their demands. Employment minister Thulas Nxesi, a former trade unionist, was booed by workers as he arrived...

November 23, 2022
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14Nov

South Africa. Unions and SOEs that fail to pay employee benefits are facing few to no consequences

Retirement, medical and other contributions deducted from employees’ salaries are not being paid to the relevant funds and schemes by some SOEs and unions. In a tough economic environment, unions and state-owned enterprises (SOEs) are starting to default on employee benefits such as retirement fund and medical scheme contributions. And there are apparently few to no consequences for this behaviour. Earlier this week, Pension Funds Adjudicator Muvhango Lukhaimane issued a ruling against the South African Transport and Allied Workers Union (Satawu)...

November 14, 2022
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03Nov

South Africa. Africa’s largest pension fund, the GEPF, is still backing SA and investments in the country

The Government Employees Pension Fund, which manages R2.24-trillion in pension savings belonging to 1.26 million public servants, is still optimistic about SA’s economy and investment prospects. It is allocating most of its capital to SA-based investments and backing state-owned enterprises. The continent’s largest pension fund is bullish about investments that are exposed to SA’s economy and has not taken a dim view on state-owned enterprises, despite many being regarded as basket cases. The Government Employees Pension Fund (GEPF) manages...

November 3, 2022
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October 2022
19Oct

A leisurely retirement is further out of reach for most South Africans

Retirement. What does the word mean to you? For the enviable few who have built up a decent nest egg, retirement represents a life of leisure as compensation for years worked. But that is not the reality for most South Africans. When 10X Investments published its first South African Retirement Reality Report in 2018, it highlighted how poorly prepared working South Africans were for retirement. Subsequent reports, including the latest, released recently, have shown that the outlook is worsening by...

October 19, 2022
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17Oct

South African savings grew by 15.4% in 2021, report shows

Allianz unveiled the 13th edition of its Global Wealth Report, which puts the asset and debt situation of households in almost 60 countries under the microscope. In retrospect, 2021 might have been the last year of the old “new normal”, with bullish stock markets powered by monetary policy. Households benefitted handsomely: For the third year in a row, global financial assets grew by double-digits in 2021, reaching €233tn (+10.4%). In these last three years, private wealth increased by a staggering €60tn. This...

October 17, 2022
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September 2022
09Sep

South Africa. EPPF confirms repayment of R30m in Brian Molefe pension order

Molefe is applying for leave to appeal the high court judgment requiring him to return R10m to the fund, possibly delaying resolution of the matter: Lorato Aphiri – Legal Advisor, Eskom Pension and Provident Fund. FIFI PETERS: Let’s shift on to the latest happenings coming out of the Eskom Pension and Provide Fund. They’ve said that the former Eskom boss, Brian Molefe, is still not paying back the money that is owed to the pension and provident fund. This relates...

September 9, 2022
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August 2022
22Aug

South Africa. One simple decision can cost you 41% of your retirement

On the back of the widely known statistic that over 90% of South Africans are not in a position to retire comfortably, FNB Employee Benefits has also noted a growing trend amongst SME employees not fully understanding or saving enough for retirement. “Although up to 70% of our commercial banking employers currently don’t offer formal benefits to their staff members, the small and medium businesses that do offer these benefits are concerned at the low rate of retirement saving from...

August 22, 2022
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08Aug

South Africa. Proposed new ‘two-pot’ will allow one withdrawal per year from savings

On 31 July, the South African government announced the proposal of a “two-pot” retirement system. The proposed system will allow people to save for non-retirement purposes (e.g. emergencies) via their retirement funds and access one third of their retirement savings when needed. You can withdraw money once a year, as long as there is money in the savings pot. "These amendments aim to encourage members to preserve their retirement savings by making it more flexible to accommodate unforeseen pressures that members face...

August 8, 2022
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02Aug

South Africa. Two-pot system will not make any pension savings immediately available

A call from National Treasury for public comment on proposed changes to legislation, as part of the overhaul of SA’s retirement savings industry, discloses a very important aspect about accessing your pension fund in that members of pension and retirement funds will not be able to access their existing pension fund money once the new legislation comes into effect next year. In effect, the new ‘two-pot’ system seems to have evolved into a ‘three-pot’ system. The most recent statement from Treasury...

August 2, 2022
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01Aug

South Africa’s Treasury Drafts Plan to Lift Retirement Savings

South Africa’s National Treasury has published draft reforms aimed at encouraging citizens to have easily accessible savings, while also ringfencing funds meant for retirement. The so-called two-pot system will allow individuals to contribute one-third of savings into an account that can be accessible at any time, while two-thirds must only become available at retirement. Read also South Africa. Two-pot system will not make any pension savings immediately available “The two-pot system option will present a better balance between ensuring preservation of retirement...

August 1, 2022
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