South Africa’s retirement savings gap leaves millions exposed as old age approaches

South Africa ranks 51st out of 55 countries for retirement provision, despite having substantial pension assets and a well-developed regulatory framework. This ranking comes from the 2026 Marsh CFA Institute Global Pension Index, which highlights the lack of adequate savings for millions of people as they approach old age. A significant obstacle is the voluntary nature of workplace retirement schemes, with only 58.1% of formally employed South Africans participating in these funds.

This means that millions of people are left without access to formal retirement savings, including informal workers, self-employed individuals, and those with irregular incomes. Belinda Sullivan, head of Corporate Consulting Strategy at Alexforbes, notes that compulsory participation or automatic enrollment could help close the gap, along with extending retirement provision to those outside occupational schemes.

While the overall score for South Africa's retirement system is 50.4, with a C grade, its performance in adequacy and sustainability is particularly weak, ranking 54th and 39th, respectively. The report identifies several areas needing improvement, such as increasing minimum support for the poorest older people, expanding coverage of occupational retirement funds, and introducing mandatory contributions.