oa Codicillus - Social security for an ageing population

Abstract

In South Africa, the old age pension system has evolved into a well-developed three-tier system, providing benefits to the majority of the older inhabitants of the country. The three components are the various contributory employment related pension funds, private savings and State Old Age Pension. For the old age pension system to be effective, it is required that these three systems are administered in an integrated manner. Although the system is developed and well suited to provide for the South African population there is a tendency of extensive reliance on the State Old Age Pension component, creating an imbalance that could prove to be disastrous in future.