What is Pension?
A pension is a fund into which a sum of money is added during an employee’s employment years and from which payments are drawn to support the person’s retirement from work in the form of periodic payments
How does pension work in South Africa?
A pension fund is a retirement fund that receives frequent contributions (usually monthly) from you and your employer. At retirement, you can access up to one third of the benefit in cash, and the remaining two thirds must be used to purchase an income annuity.
At what age do you get pension in South Africa?
The pension age is 60 for both men and women. The pension is means-tested with individuals having an income of under ZAR 73 800 for singles and ZAR 147 600 for couples and no more than ZAR 1 056 000 in assets for a single person and ZAR 2 112 000 for a couple.
How much is the pension per person?
Age Pension rates for a single person
| AMOUNT | INCREASE | |
|---|---|---|
| Maximum base rate | R1790.79 | R36.98 |
| Maximum pension supplement | R144.53 | R2.98 |
| Energy supplement | R28.03 | – |
| Total (per fortnight) | R1963.34 | R39.96 |