The good, not-so-good, and bad news awaiting pensioners

Pensioners especially must get ready for a bank-balance-draining economy.

There is one silver lining.

Unfortunately, more bad news than good news awaits pensioners.

The Good News for Pensioners

The good news applies to pensioners getting an older person’s grant.

These pensioners will receive 3 grant payments over the next 11 weeks.

Pensioners only have to wait 30 days between September and October’s social grant dates.

Between the October and November social grant dates, it’s 31 days.

Then, between the November and December social grant dates, there are 28 days.

The Bad News

However, those receiving the Older Person’s grant will have a long wait between the December 2026 and January 2027 dates.

Pensioners will receive their December grant payment on 2 December 2026.

But they’ll have to wait until 5 January 2027 for their next payment.

That’s 33 days (and several public holidays) between payment dates.

Fuel Increases and Food Prices

Pensioners also need to prepare for record-breaking fuel prices.

Currently, the Central Energy Fund (CEF) places the increase at more than R2 a litre.

The increase will drive up transport costs.

But it will ultimately impact food prices.

For retailers, transport costs make up 15% of the final price.

Diesel reaching R32 a litre could put further pressure on suppliers who’ll be forced to increase costs.

Pensioners buying premium foods should expect to pay even more.

According to Statistics South Africa (Stats SA), fish, meat, unprocessed foods, and dairy prices increased in July.

The Terrible News

The worst news awaiting pensioners will start in 2027, especially if economic conditions don’t improve.

Older Person’s Grant Increases

Experts warn pensioners shouldn’t expect much from next year’s increase.

Professor Heinrich Bohlmann of the University of Pretoria’s Economics Department explained that even a 10% increase will do little to reduce inflation’s impact on pensioners.

“Even then, with inflation running at around 4-5%, the real increase individual pensioners will see will hardly be felt in any significant way,” he said.

Retirement Savings

But even pensioners getting a retirement annuity could start draining their bank balance between payments.

A CPI-linked annuity means next year’s payments will only increase by 4.5% or 5%.

But inflation impacts every pensioner differently.

Depending on a pensioner’s spending habits, personal inflation could reach 12%.

Electricity, levies, health services, and transportation will have the biggest impact.

Currently, these increase at rates above inflation.

If an annuity increases by 5% but lifestyle spending by 12%, pensioners will have a significant deficit.