SASSA old-age pension versus the world: How do they compare? Local government pensions disbursed by the South African Social Security Agency go out to roughly 4-million needy citizens over the aged of 60 each month. These increased in April 2024, with a further increase slated for October 2024.
However, it’s too early to tell what the new Minister of Social Development, Sisisi Tolashe has up her sleeve. While controlling one of the largest department budgets (R275 billion) in the National Assembly, we are still unable to confirm her tertiary education and qualifications for the job, never mind her first big move in office.
SASSA OLD-AGE PENSION VERSUS THE WORLD
Nevertheless, change of management or no, we wanted to know about SASSA old-age pension versus the world. How do government welfare payouts across the world differ and where does South Africa actually rank? To that end, we unearthed a research paper from 2022 in the House of Commons Library in the UK, which compared various old-age pensions around the world.
In the paper that compares SASSA old-age pension versus the world, it does qualifiy its findings with the following caveat. “The findings are complicated by substantial differences in structure of pension systems across the world. Governments differ not only in reliance on old-age pension provision, but also on the structure, eligibility and financing basis for old-age pension,” says the report.
PENSION GRANTS AROUND THE GLOBE
Nevertheless, let’s first look at the amount paid by government for a state old-age pension. In South Africa, SASSA Old-Age Pensions pay R2 180 (60-years of age) and R2 200 (75-years of age). In the UK, a flat-rate old-age pension is £185 per week – or R4 463 at the current exchange rate. Multiple that by four and you get £740. That’s a staggering R17 852 per month. Moreover, researchers say many UK pensioners supplement this income with personal pensions accrued from years of working, too.
And that’s not even the highest listed in the research document. Other notable nations in Europe pay its pensioners the following:
- Denmark – £1 440 (R34 742).
- Ireland – £1 012 (R24 465).
- Netherlands – £948 (R22 872).
- United Kingdom – £740 (R17 852).
- Compared to South Africa – £91 (R2 200).
NATIONAL GDP PERCENTAGE
Public expenditure on SASSA old-age pension versus the world is another interesting differentiator between countries. Currently, in South Africa, the R275 billion budgeted accounts for 3.6% of Gross Domestic Product (GDP). Elsewhere, a selection of percentages (from 2017) looks like this:
- Greece – 13%
- France – 11.9%
- Japan – 8.2%
- Germany – 8.0%
- European average – 6.5%
- Netherlands – 5.1%
- United Kingdom – 4.7%
- Australia – 3.9%
- South Africa – 3.6%
- Israel – 2.0%
What this quick snapshot shows of SASSA old-age pension versus the world is that more can and should be done to support our elderly. Of course, cost of living and economic stability differs massively across all these countries. But for all its talk of ‘pro-poor policies’, Minister Tolashe could nearly double her budget and still not meet the European average. Food for thought for the new Minster, perhaps …
ARE YOU SATISFIED WITH HOW WE COMPARE?
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