South Africa. Has the retirement industry underestimated inflation risk?

The South African Reserve Bank's higher-for-longer interest rate outlook and revised inflation expectations have sharpened a critical challenge for retirement savers and funds: generating real returns is becoming more difficult, annuity pricing and liability assumptions may need recalibration, and portfolios designed for a low-inflation environment could struggle to deliver the outcomes members expect. For years, trustee agendas have been dominated by corporate governance, regulatory compliance, and investment performance. But as the macroeconomic landscape shifts, it’s becoming clear that parts of the industry...