An analysis of feasibility of sustaining retirement benefits in South Africa

Abstract

Retirement reforms in South Africa is a longest debate post democratic systems of governance which has been accepted with mixed reactions from members of retirement funds and retirement industry. This debate has been ongoing since 2002 to date. Since then, National Treasury has published numerous retirement reforms discussion papers which aimed at overhauling the retirement funding systems to be in line with the core values of the Constitution of the Republic of South Africa, 1996 which is based on no-racialism, non-sexism, social justice, and human dignity. The retirement funding systems under apartheid systems of governance excludes Africans, coloureds and Indians. The system favoured the white minority who were far ahead of blacks in terms of retirement funding savings. The study analysis the feasibility of sustaining retirement benefits in South Africa and explore measures which must be implemented in order to achieve and deliver preservation of the pension fund benefits. Furthermore, it interrogates contemporary literature, regulations, and policies to explore ways in which the current retirement system may be reformed holistically to ensure that preservation of the pension fund benefits is achieved.