From BAD to WORSE for South African pensioners

The daily struggles of South African pensioners are known all too well. Now, an international ranking, the 2026 Marsh CFA Institute Global Pension Index, confirms that South Africa is indeed languishing in the bottom tier of the countries measured.

Sadly, out of 55 retirement systems, South Africa ranks 51st. Our score slipped from 51 to 50.4. This gives a C grade and places us well below the global average of 65.3. For reference, the Netherlands tops the table at 85.8.

BAD NEWS FOR SOUTH AFRICAN PENSIONERS

Across the index’s three measurables, the landscape for South African pensioners falls short each time:

• Adequacy: 37.3, down from 38. That’s below Namibia (50.8), Botswana (49.6) and Kenya (38.9).
• Sustainability: 47.8, down from 48.2.
• Integrity: 75, our best number, but still down from 75.7.

The Marsh CFA Institute notes that many South Africans work outside formal employment, and therefore, outside employer retirement schemes. In turn, the means-tested South African Social Security Agency grant for the elderly acts as the public safety net. But it is also not sufficient as a standalone support system.

WHAT SASSA SAFETY NET PAYS

As regular readers know, the SASSA Older Person’s Grant, paid earlier than expected last month, due to today’s local government elections:

• R2 400 for ages 60 to 74.
• R2 420 for ages 75 and over.

Sadly, the month of October 2026 came and went without a top-up, the first time in two years this hasn’t occurred. The agency didn’t deliver even a R10 bump, while groups have been organising and marching for increase to R3 000 and even R5 000 a month.

WHAT OCTOBER MTBPS DID CONFIRM

Instead, Finance Minister Enoch Godongwana’s MTBPS address on 21 October set out another way forward. Rather than SASSA grant increases, it confirmed a savings target: R13 billion from reducing fraud’ in social grants, with tighter biometric verification of beneficiary ID forming an important part of the plan.

SASSA says that between April and June 2026, 105 600 beneficiaries were reviewed, and 56 807 grants were suspended. Accordingly, it reiterated that it doesn’t cancel grants ‘abruptly,’ but all recipients should expect tougher scrutiny in 2027. South Africa’s pension system is failing on adequacy, because millions of elderly rely on a stipend of R80 per day, which doesn’t buy them very much. Stronger support is needed …

But what do you think? What more can be done for South African pensioners? Please share your thoughts in the comments section below.