South Africa
Worked in South Africa? Any pension you built up here is yours to keep and can usually be paid to you abroad — but you have to claim it; it won't start automatically. The full state pension age is 60, with early access from 55. On totalization, your South Africa contributions generally stand on their own. Below is South Africa's system at a glance and what expats should check.
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Free guide: How to get your South Africa pension statement — the official route, step by step.
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Overview
South Africa operates a multi-pillar retirement system with no universal mandatory contributory old-age pension.
The foundation is a means-tested, tax-funded Old Age Grant (Older Persons Grant) administered by the South African Social Security Agency (SASSA), paying R2,400/month (ages 60–74) and R2,420/month (ages 75+) from April 2026 per the 2026 Budget. This grant is the primary income source for approximately 75% of the elderly population. Occupational retirement funds (pension and provident funds) are voluntary but widespread in the formal sector, covering an estimated 66–84% of formal sector employees. These are regulated by the Financial Sector Conduct Authority (FSCA) under the Pension Funds Act of 1956 and operate predominantly on a defined contribution basis. The Government Employees Pension Fund (GEPF) is Africa's largest pension fund, a defined benefit scheme covering all public servants, with over 1.267 million active members and 565,221 pensioners and beneficiaries as at 31 March 2025, and assets of R2.69 trillion (119% funded); the fund surpassed R3 trillion during the 2025/26 financial year (subject to audit). GEPF granted a 3.5% pension increase effective 1 April 2026 (100% of CPI for November 2025), and implemented revised actuarial interest factors from 1 October 2025 that reduce pre-retirement exit benefits by an average of 15% (retirement benefits at normal retirement age are unaffected). The GEPF retirement age has NOT changed and remains at 60 — widely circulated claims of a change to 67 have been categorically denied by GEPF and fact-checked as false.
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A landmark reform — the Two-Pot Retirement System — took effect on 1 September 2024. Under this system, all new contributions to retirement funds are split: one-third into an accessible Savings Pot (withdrawable once per tax year from 1 March to 28/29 February, minimum R2,000, taxed at marginal rates) and two-thirds into a locked Retirement Pot (accessible only at retirement). Existing savings prior to 1 September 2024 are ringfenced in a Vested Pot under the old rules. A once-off seed capital transfer of 10% of existing savings (capped at R30,000) was made to the Savings Pot at inception. More than R43 billion has been withdrawn from Savings Pots since launch. The 2026 Budget introduced significant retirement threshold changes effective 1 March 2026: the annual tax-deductible retirement fund contribution cap increased from R350,000 to R430,000 (first increase since 2016); the annuitisation de minimis threshold increased from R247,500 to R360,000; and the living annuity commutation threshold increased from R125,000 to R150,000.
Voluntary private savings via Retirement Annuity Funds (RAFs) are available, with contributions tax-deductible up to 27.5% of the greater of remuneration or taxable income, capped at R430,000 per year (from 1 March 2026). South Africa has no mandatory contributory national social security pension scheme, though a Green Paper proposing a National Social Security Fund (NSSF) has been under discussion since 2021 but has not been enacted. The OECD estimates South Africa's gross replacement rate from its voluntary system at approximately 17–21% for average earners, well below the OECD average of 52%. From 11 April 2025, SARS discontinued the RST02 refund process for non-residents; refunds are now processed via the annual ITR12 tax return. From April 2024, SARS requires a Non-Resident Tax Status Confirmation Letter (not just a TCS PIN) when applying for a tax directive to withdraw retirement funds as a non-resident. The proposed removal of the foreign pension exemption (s10(1)(gC)(ii)) from 1 March 2026 was withdrawn by National Treasury in November 2025 for broader consultation — the current exemption remains in force pending further legislative process.
~17–21% (mandatory/social assistance only); higher with voluntary occupational savings
Pillar 0: Old Age Grant (means-tested, tax-funded, SASSA); Pillar 2: Occupational retirement funds — pension, provident, and preservation funds (voluntary employer-sponsored, DC and DB); Pillar 2b: GEPF (mandatory defined benefit for public servants); Pillar 3: Retirement Annuity Funds (voluntary individual savings)
Means-tested social assistance (Pillar 0) + voluntary occupational DC/DB + mandatory DB for public servants (GEPF) + voluntary private RA
Employee
No statutory rate for occupational funds (varies by fund rules). GEPF: 7.5% of pensionable salary. RAF: up to 27.5% of remuneration/taxable income (capped at R430,000/year from 1 March 2026). Old Age Grant: tax-funded, no employee contribution.
Employer
No statutory rate for occupational funds (varies by fund rules). GEPF: 13% of pensionable salary (16% for police, defence, correctional, and intelligence services). Employer contributions to approved funds are tax-deductible up to 10% of employee remuneration.
Self-Employed
Voluntary; may contribute to RAF up to 27.5% of taxable income (capped at R430,000/year from 1 March 2026)
Notes
South Africa has no mandatory contributory national pension scheme. Contribution rates for occupational funds are set by individual fund rules. The Two-Pot System (effective 1 September 2024) splits new contributions: one-third to Savings Pot, two-thirds to Retirement Pot. Employer contributions to approved funds are tax-deductible up to 10% of employee remuneration for employer tax purposes.
Common questions
What is the retirement age in South Africa?
The full state pension age in South Africa is 60. Early retirement may be possible from 55.
Can I claim a South Africa pension if I live abroad?
Yes. A pension you've earned in South Africa stays yours wherever you retire, and can usually be paid into an overseas account once you reach pension age. It won't start automatically, though — you need to claim it, typically a few months in advance, through South Africa's pension authority.
Do totalization agreements affect my South Africa pension?
Our records show South Africa has limited or no bilateral totalization agreements, so your South Africa contributions generally can't be combined with other countries' to qualify. Confirm the latest position with the official authority.
How is the pension system structured in South Africa?
Means-tested social assistance (Pillar 0) + voluntary occupational DC/DB + mandatory DB for public servants (GEPF) + voluntary private RA Pillar 0: Old Age Grant (means-tested, tax-funded, SASSA); Pillar 2: Occupational retirement funds — pension, provident, and preservation funds (voluntary employer-sponsored, DC and DB); Pillar 2b: GEPF (mandatory defined benefit for public servants); Pillar 3: Retirement Annuity Funds (voluntary individual savings) It includes 4 schemes in our directory.
How do I get a copy of my South Africa pension record?
Ask SASSA / your retirement fund for your Retirement fund statement / SASSA Old Age Grant (the Retirement fund statement and state grant record). It's free and you can request it yourself — our step-by-step guide on this page walks through the portal, what to have ready, and what to do if the login fails.