What Is the Retirement Age in South Africa?
Pension age in South Africa
In paper, both males and females in South Africa can retire at the age of 60. This is the legal retirement age for state pensions. In actuality, there is no set retirement age in the law. Despite the fact that it is generally accepted that people retire at age 55, 60, or 65, the South African government disagrees. The eligibility requirements of the individual’s employer pension fund frequently determine the actual retirement age in practice. If a public sector employee has at least 10 years of service and is receiving a pension from the Government Employees Pension Fund (GEPF) of South Africa, for instance, they may be able to choose to retire early.
South African complementary pensions
South African citizens who don’t qualify for the means-tested pension have only employment-based or private pension choices because the country lacks a universal and comprehensive public pension system.
In South Africa, only individuals who are employed are eligible for employer-based pensions. For people who work in the public sector, the Government Employees Pension Fund (GEPF) is the biggest of them. The vast majority of workers in the formally recognized private sector will also have pensions that are based on contributions.
Who qualifies for a pension in South Africa?
Some foreigners who reside and work in South Africa are eligible to receive a pension from that country. Many expats often do not qualify because it is income-based. This implies that a significant portion of immigrants who are of retirement age in South Africa rely on private or occupational-based pensions instead.
You must earn less than R78,120 per year (or less than R156,240 if you live with a partner) and have assets worth no more than R1,115,400 in order to be eligible for this South African pension (or no more than R2,230,800 if living with a spouse). The South African government can provide more information about eligibility requirements.
Who qualifies for a state pension?
Both South African citizens and foreigners who have acquired citizenship or permanent residency status in South Africa are eligible for the SASSA Grant for Older Persons. Those who have been given political leave to remain may also use it.
Because this award is means-tested rather than contribution-based, you are eligible regardless of how long you have lived or worked in South Africa. To stimulate private retirement savings and reduce the financial burden on the government, the means test may be removed or the eligibility threshold raised.
South African pensions for overseas workers
If foreign residents in South Africa have obtained permanent residency or become South African citizens, they are eligible to apply for an SASSA award. If one is not eligible for the grant-based pension in South Africa, one may choose a private retirement fund or a contributing occupational pension (if one is employed).
Apart from the Netherlands, South Africa has no other bilateral social security arrangement. This isn’t a huge issue, though, because the South African state pension isn’t reliant on contributions.
Because this award is means-tested rather than contribution-based, you are eligible regardless of how long you have lived or worked in South Africa. The means test can be dropped.
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How to submit a pension application in South Africa
You must go to your nearby SASSA office and submit an application if you want to be considered for an SASSA grant-based, means-tested South African pension.
You must bring your identifying document with a 13-digit barcode. If you don’t have an ID, you must present a sworn declaration from a respectable individual (such as a counselor, a religious leader, or a school administrator) who can attest to your identity and age.
The South African government doesn’t impose any tax on overseas pension schemes. However, you will need to check how your payments from state pensions overseas might be affected. QROPS allows expats to consolidate their pensions into one plan – this helps them manage their retirement funds more easily. The GEPF pays a death benefit to surviving spouses or children of members that die while in service or within five years of becoming a pensioner. The survivor’s pension rate is between some 40–60% of the deceased’s salary, depending on contributions, for a maximum of 34 weeks.
