South Africa's Pension System Needs Tweaking

According to the Global Pension Index Report, South Africa's pension fund system has been ranked 27th. This is out of 49 countries which took part in the index. 

The index has recommended for South Africa to rethink its pension system by making it compulsory for every employed person to have a retirement fund. 

Craig Bantley, Head of Multinational Consulting at Alexander Forbes said South Africa struggles with the public and private pension system. 

He urged South Africans to think about the long term when saving for their pension funds. 

Covid-19 could make it difficult but Bantley has urged South Africans to look towards the future. 

"Before you act and consider the short term, look through this period and plan. You as an individual can defer your retirement in the fund for a period and take your pension at a later stage if that's possible,"

"Managing a holistic plan is the best way navigate through this period and uncertainty" he said. 

Yehuda Kay, Head of Short term and medical aid at Octagon Financial said mandatory contributions from employers and employees would go a long way. 

However, South Africa is facing a number of issues, such as gender inequality that make it difficult. 

"The salary discrepancies between males and females even in the same positions is still a war that South African society is fighting,"

"There is no reason why a female who is working should be a) underpaid in any way from her male counterpart and b) should not part of a pension fund," said Kay.

He said historical contributers towards gender inequality should come to an end.

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