January 2025
31Jan

South Africans face the prospect of retiring at 80

Based on data from over 300 000 Sanlam Umbrella Fund members. While 65 remains the official retirement age, most South Africans will need to work until 80 before they can afford to retire comfortably. This is according to data from Sanlam Corporate, based on insights into its over 300 000 Sanlam Umbrella Fund members. The company’s research highlights a growing retirement funding crisis, with estimates that only one in four South Africans will be able to retire at 65. Sanlam Corporate CEO Kanyisa...

January 31, 2025
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22Jan

South African ban on cryptocurrency for pensions in the crosshairs

As the value of cryptocurrencies, particularly Bitcoin, continues to rise internationally, there have been growing calls for South African pension funds to be allowed to invest in cryptocurrencies. Currently, Regulation 28, which governs where pension funds can invest, tightly restricts their investment options. Proposals suggest amending this regulation to include cryptocurrencies, which could have significant implications for the industry and investors. Farzam Ehsani, co-founder and CEO of major South African cryptocurrency exchange VALR, said South Africans deserve nothing less than to lift...

January 22, 2025
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December 2024
05Dec

South Africa. Survey shows that withdrawals will be used to repay debt

A new survey sheds light on what pension fund members want to use the money for when they withdraw some of their retirement savings under the two-pot retirement system, while it also shows how much (or little) people know about this big change to pension funds. The survey was conducted by JustMoney.co.za, a platform that helps South Africans make good money choices. Sarah Nicholson, operations manager at JustMoney, says among respondents considering withdrawing funds, 79% said they would use the money...

December 5, 2024
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November 2024
20Nov

South Africans Withdraw $1.94 Billion From Pensions

South Africans have withdrawn 35.1 billion rand ($1.94 billion) from retirement funds since new laws came into effect three months ago giving them early access to part of their savings. The figure is higher than the amount the National Treasury forecast savers would tap after the implementation of a so-called two-pot pension system on Sept. 1. South Africa’s central bank has said that a high-withdrawal scenario may help boost the country’s economic growth rate by as much as 0.3 percentage...

November 20, 2024
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11Nov

South Africa. How CDC may revolutionise the pension industry

A look at how collective defined contribution schemes differ from DB and DC schemes and why SA’s pension industry should note the shift in the UK. The local pension industry seems poised to embrace the collective defined contribution (CDC) model in the future despite their complexities. New administration systems to accommodate these types of structures will have to be designed as well as new regulations to govern them. An employer and member education drive to explain how these...

November 11, 2024
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October 2024
17Oct

Big pension changes for divorce in South Africa

The new Pension Funds Amendment Act (PFAA) was recently signed into law, which will seriously impact divorce proceedings in South Africa. New retirement fund rules have changed how pensions are divided between divorced South Africans. “Before the PFAA it has been a well-established principle in our law that a divorce order is only enforceable against a pension fund as long as the member is still a member of the fund,” said Wright Rose-Innes. “Now, with the introduction of the PFAA and the...

October 17, 2024
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September 2024
13Sep

South Africa. Over 63,000 government employees dip into their two-pot retirement funds, says GPAA

The Government Pensions Administration Agency (GPAA) has confirmed that that more than 60,000 public sector employees have made applications to make withdrawals from their savings pot of the two-pot retirement system. According to the GPAA, the Government Employees Pension Fund (GEFP) has received a little under 63,000 two-pot retirement system applications since September 1, 2024. In terms of two-pot retirement system enquiries, the GPAA said it has received a high number of applications from its members, which include teachers, nurses, police officers and other...

September 13, 2024
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August 2024
21Aug

South Africa. Two-pot retirement system: fewer early withdrawals, more financial optimism

While many South Africans who are members of pension funds are counting the days until they can withdraw from their savings pot under the two-pot retirement system, research suggests that fewer people plan to dip into their retirement savings early, probably thanks to financial optimism as the economy improves. According to the 2024 Old Mutual Savings and Investment Monitor that took a deep dive into the two-pot retirement system, the number of working South Africans with retirement savings provision (income...

August 21, 2024
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16Aug

South Africa. Should government use pensions to fund it projects?

Government forcing pension funds to invest in its projects have long been a discussion in South Africa and the ANC promised to implement it after the elections to pay for economic development and industrialisation. Dr David Masondo, deputy minister of finance, said at an Old Mutual event on Tuesday that government is committed to respect the investment mandates of pension funds to increase investment turnover based on acceptable risk. Then he referred to Regulation 28 of the the Pension Funds Act that...

August 16, 2024
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06Aug

South Africa’s two-pot retirement threat

South Africa has a dismal savings rate, with more money flowing out of retirement vehicles than being put in—and the Reserve Bank warns there is a slight chance the new two-pot retirement system will exacerbate the problem. According to the latest 10X Investments Retirement Reality Report 2023, only 6% of South Africans are on track to retire comfortably. A comfortable retirement means being able to afford 70% of your pre-retirement income during retirement. The report is based on findings from the 2023...

August 6, 2024
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