Big changes for R88 billion in unclaimed assets in South Africa
During Wednesday’s 2026 Budget Speech, Finance Minister Enoch Godongwana revealed that the country has more than R88 billion in unclaimed financial assets and benefits.
The government now plans to manage these unclaimed benefits by creating a central administrator responsible for record-keeping and tracing.
This is to make the claims process simpler for those owed the money.
In 2025, the Financial Sector Conduct Authority (FSCA) Commissioner, Unathi Kamlana, reported similar figures—around R88 billion owed to South Africans but not claimed.
Nedbank analysts noted that a significant portion of undiscovered assets comes from retirement funds, specifically indicating that 53% of these unclaimed benefits are from retirement accounts.
The analysts also noted that the collective investment scheme and life insurance sectors together account for 38% of the total unclaimed assets.
The FSCA confirmed recent figures, which indicate there are over 4.3 million members with unclaimed retirement benefits worth over R51 billion.
“Following recommendations from the Financial Sector Conduct Authority, National Treasury will introduce reforms to manage these unclaimed benefits through the creation of a central administrator responsible for record keeping and tracing,” said Godongwana.
The reform seeks to establish a central administrator responsible for maintaining records of available benefits and for assisting individuals in identifying those to which they are entitled.
The goal of the reform is to simplify the process for people to claim benefits they may not be aware of or have difficulty accessing due to inadequate record-keeping.
Momentum Corporate Head of Employee Benefits Henré Prinsloo said that the extent of unclaimed benefits in South Africa necessitates reform, but that mere centralisation will not address the fundamental issues.
“A centralised administrator could create a more consistent and coordinated approach to tracing, verification, and payment of beneficiaries,” said Prinsloo.
Prinsloo said that an advantage of centralisation is the efficiency it could bring.
“A single, uniform approach to tracing members, beneficiaries, and estates may lead to cost savings and improved outcomes compared to the fragmented methodology currently in place across the market,” said Prinsloo.
A way forward
“Current legislation dictates that if a benefit remains unclaimed for 24 months, it is classified as unclaimed and moved to a dedicated fund for preservation,” said Prinsloo.
“While various platforms have emerged to assist individuals in tracking these assets, the widening gap between available funds and successful claims suggests that a more unified, proactive structure is required,” he said.
Prinsloo said that timing, along with several other practical considerations, should be cautiously assessed.
He said that each day beneficiaries remain untraced, the amount of unclaimed benefits increases and that establishing a central administrator would require a thorough legal and regulatory framework.
Prinsloo also pointed out that this process might take years, during which the issue could continue to worsen.
“The fundamental issue is often a lack of reliable information. Many individuals left employment years ago or have passed away, and their beneficiaries may not even be aware that benefits are due.”
“Centralising administration does not automatically solve historical record-keeping and data limitations.”
Prinsloo raises a broader policy question about whether funds that remain untraceable after exhaustive efforts should be kept in a central structure in perpetuity, or if they should be released to support South Africa’s broader social and economic development while still protecting the rights of original beneficiaries.
He noted that any such decision would need to navigate complex legal considerations, which he believes is a discussion worth having.
“Currently, this capital is not benefiting anyone. In a country with significant capital needs, there may be ways for these funds to support social and economic development, while still protecting the rights of original beneficiaries.”
Prinsloo concluded that although the idea of a centralised administrator has potential value, effective reform must consider operational, governance, and data challenges to achieve real results.
“Centralisation may improve coordination, but it will not eliminate the core tracing challenges overnight. A balanced and carefully governed approach will be essential,” he said.
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