SASSA: How do South African pensions compare to the rest of Africa

The South African wanted to know how SASSA pensions compare to the rest of Africa, following the damning appraisal versus other nations globally. Against some European states, the South African Social Security Agency pension is anywhere from four to eight times less. However, seeing how SASSA pensions compare to the rest of Africa should paint a better picture for the country’s old-age pensioners (OAPs).

AFRICA IS AGEING RAPIDLY

We tracked down a study from the Organisation for Economic Cooperation and Development (OECD) that delves into pensions on the African continent. The report notes that there are very few private pensions disbursed and most are state funded. Similarly, Africa is a rapidly ageing continent. The United Nations predicts that by the year 2050 more than 2-billion people will be over the age of 60. In fact, over 60s represent the fastest-growing population group in Africa right now.

HOW SASSA PENSIONS COMPARE TO THE REST OF AFRICA

So, within the context of the urgent need for pension reform on the continent, how do SASSA pensions compare to the rest of Africa? The OECD points out that African nations are utilising vastly different earnings-related systems, so comparing like-for-like is difficult. Nevertheless, some easily distinguishable traits are:

• SASSA’s is a means- and asset-tested state pension system.
• Universal state pension systems (age being the only qualifier) exist in Botswana (paying the equivalent of R736 per month), Lesotho (R550 p/m), Mauritius (R2 057 p/m) and Namibia (R1 100 p/m).
• Nigeria and Kenya offer occupational state pensions. This is if you worked as a civil servant, for example, or opted into the state pension and were taxed throughout your working life.
• Many African nations pay out a percentage of salary earned per month (anywhere from 25-60%) in retirement.

EARNINGS-RELATED PENSIONS

Finding reliable figures on how SASSA pensions compare to the rest of Africa is difficult. But where possible, and converting local currency to Rands, we found the following selection of pensions paid by the state:

• Zambia – R3 930 p/m.
• South Africa – R2 090 p/m.
• Mauritius – R2 057 p/m.
• Seychelles – R1 196 p/m.
• Namibia – R1 100 p/m.
• Cape Verde – R930 p/m.
• Botswana – R736 p/m.
• Lesotho – R550 p/m.
• Ghana – R444 p/m.
• Ethiopia – R247 p/m.
• Tanzania – R88 p/m.
• Rwanda – R51 p/m.
• Burundi – 60% of wage.
• Congo – 50% of wage.
• Sierra Leone – 50% of wage.  
• Ivory Coast – 50% of wage
• Cameroon – 30% of wage.
• Madagascar – 30% of wage.
• Benin – 30% of wage.
• Liberia – 25% of wage.

FINDINGS ON SASSA OLD-AGE PENSIONS

According to these findings, state-funded SASSA pensions compare favourably to the rest of Africa. With the exception of Zambia, the closest in Rand terms is Mauritius and Seychelles. Therefore, we should applaud the efforts of the South African Social Security Agency and government in alleviating poverty and improving the quality of life for old-age pensioners in South Africa.

NEXT READ: MUST pensioners reapply for SASSA Old-Age Grants April 2024?