Fin24 reports that according to the 2021 Global Pension Index Report produced by Mercer and the CFA Institute, SA’s pension system is a C-grade.

It ranked the country's pension system number 31 out of 43 countries. The index analysed 43 pension systems covering almost two-thirds of the world's population. It did not limit its research only to occupational pensions. SA scored 53.6 out of possible 100 points. It did particularly badly in terms of sustainability and adequacy of pensions in the country, scoring below 50% in those two areas. And that's not based only on retirement savings, but homeownership, debts and other savings that households have. SA has many factors working against it, from high unemployment to high household indebtedness and people constantly taking their retirement savings in cash. However, the 53.6 points presented a slight improvement from 2020, thanks to the annuitisation of provident fund benefits, which began in March this year. According to the report, Iceland, the Netherlands and Denmark have the best systems to help people live comfortably after retirement. While SA’s performance is nothing to brag about, it did fare relatively better than countries like Thailand, India and Argentina – and even the more developed Italy and Japan. The Fin24 reports goes on to look at what other countries are doing right that SA isn't.

• Read the full original of the report in the above regard by Londiwe Buthelezi at Fin24
• Read too, South Africa’s pension system drops to 31st place, at Moneyweb

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