SA ranks 51st of 55 for pensions. What it means for your retirement

South Africa's retirement system has slipped to 51st out of 55 in the 2026 Marsh CFA Institute Global Pension Index, with an overall score of 50.4, down from 51.0 last year. It keeps its C grade, but sits well below the global average of 65.3 and behind every other African country in the index (Marsh CFA Institute Global Pension Index 2026).

The index scores how well each country's retirement system is likely to look after people once they stop working. Only the Philippines, India, Türkiye and Argentina scored lower (index report).

How did South Africa score?

South Africa went down slightly on all three measures the index uses (index report):

• Adequacy (whether pensions pay enough to live on): 37.3, down from 38.0, a D grade
• Sustainability (whether the system can keep paying in future): 47.8, down from 48.2, a D grade
• Integrity (regulation, governance and protection of members): 75.0, down from 75.7, a B+ grade

Adequacy is the weakest score by far. It is also the measure that matters most for your monthly income in retirement.

How does SA compare with the rest of Africa?

Four African systems are in the 2026 index, and all four got a C. Namibia scored 57.5, Botswana 57.0 and Kenya, included for the first time this year, 53.1. South Africa came last of the four on 50.4 (Marsh).

At the top, the Netherlands scored 85.8, followed by Denmark (84.1) and Iceland (84.0) (index report).

Why is South Africa ranked so low?

The country has strengths, including large pension fund assets compared with the size of the economy and a well-established regulatory system, according to BusinessTech's report on the index. The problem is reach. Many people work outside formal jobs and have no employer retirement fund, so they have no structured way to save.

The state's means-tested older persons grant gives a safety net, but South Africa has no broad contributory state pension on top of private savings, which is common in higher-ranked countries (BusinessTech).

The index names wider occupational fund coverage, minimum compulsory retirement contributions, more support for the poorest older people, higher household savings and more older people in work as areas to improve. It recognises the two-pot system as a reform meant to help people keep more of their savings until retirement (BusinessTech).

Did the method change this year?

Yes. The 2026 index now checks how much income people have at age 80 as well as when they first retire, to reflect longer lives (index report). The report links the small drop in South Africa's score to updated data and method changes as well as real shifts in the system (BusinessTech).

Belinda Sullivan, head of corporate consulting strategy at Alexforbes, said the goal is "to help more people build savings and turn those savings into an income that lasts", not simply a better ranking (BusinessTech).