South Africa at the bottom of important world ranking – behind Kenya, Botswana, and Namibia
South Africa has ranked near the bottom of an important global pension index, placing behind Kenya, Botswana, and Namibia.
This comes amid persistent concerns about retirement savings, pension coverage, and people’s ability to support themselves in old age.
South Africa ranked 51st out of 55 retirement income systems assessed in the 2026 Marsh CFA Institute Global Pension Index, retaining its C grade. Its overall score declined from 51.0 in 2025 to 50.4, well below the global average of 65.3.
The index evaluated retirement systems according to three measures: adequacy, sustainability and integrity.
These measures assess whether retirement benefits provide sufficient income, whether pension systems can remain financially sustainable over time, and whether their governance and regulation protect members.
South Africa recorded declines across all three measures. Its adequacy score fell from 38.0 to 37.3, while sustainability declined from 48.2 to 47.8. Integrity, the country’s strongest area, dropped from 75.7 to 75.0 but retained a B+ grade.
Belinda Sullivan, head of corporate consulting strategy at Alexforbes, said the focus should be on improving retirement outcomes rather than simply raising South Africa’s position in the rankings.
“The priority is not simply to improve South Africa’s ranking; it is to help more people build savings and turn those savings into an income that lasts,” she said.
“Broader coverage, consistent contributions and better support for retirement decisions are essential to improving outcomes for more South Africans.”
The report attributed the overall decline to relatively small reductions across the three measures, which must be considered alongside updated data and changes to the index’s methodology.
Despite South Africa’s decline in the ranking, the report noted that the country displayed several strengths.
These included the size of its pension assets relative to gross domestic product and an established regulatory and governance framework.
However, many people remain outside formal employment and employer-sponsored retirement arrangements, limiting their access to structured retirement savings.
The latest index now expects people to live past 80 years
The country’s means-tested grant for older persons provides a public safety net, but South Africa lacks a broad contributory public pension system to complement private retirement savings.
Higher-ranked systems often combine public pensions with widespread occupational or mandatory retirement contributions.
The index identified broader occupational pension coverage, minimum mandatory retirement contributions, stronger support for the poorest older people, higher household savings and greater workforce participation among older people as priorities for South Africa.
The country’s two-pot retirement system is also recognised as a reform intended to improve preservation and harmonise retirement benefits.
Changes to the 2026 index place greater emphasis on whether retirement income remains adequate as people age.
Its replacement-rate measure now considers income at both retirement and age 80, rather than only when people leave the workforce.
Kenya joined the index for the first time this year, bringing the number of African systems assessed to four.
Namibia scored 57.5, Botswana 57.0 and Kenya 53.1, all ahead of South Africa’s 50.4. All four African countries received C grades.
The Netherlands topped the global ranking with a score of 85.8, followed by Denmark and Iceland. Singapore, Israel, and Australia completed the six systems that were awarded A grades.
Published by Marsh in collaboration with the CFA Institute and the Monash Centre for Financial Studies, the 18th edition assesses 55 retirement income systems that cover approximately 66% of the world’s population.
According to the report, the index provides an independent benchmark for policymakers as longer life expectancy, changing employment patterns, and demographic pressures increase the challenge of ensuring financial security in retirement.
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