More bad news for South Africa’s pensioners

Pensioners are dealing with the brunt of one of the worst economies in recent history.

At least that’s the sentiment among South Africa’s mature population.

But it’s not just a feeling pensioners have; the data supports it.

Pensioners are the worst affected by rising costs

According to recent data from Statistics South Africa (Stats SA), pensioners are feeling the brunt of the country’s economic woes.

When the Consumer Price Index (CPI) data was published earlier in October, it came in below expectations, at 4.5%.

However, a line within the CPI data didn’t make the headlines: pensioner inflation.

In September, pensioner inflation was 20 basis points higher than consumer inflation at 4.7%

Pensioner inflation was also higher than CPI data for every province but one: the Western Cape, where inflation reached 5.5%.

This is bad news for South Africa’s pensioners.

Bad News for Old Age Grant Beneficiaries and Retirees

Pensioner inflation being above consumer inflation means pensioners could see their finances stretched further.

Typically, National Treasury relies on CPI data to decide how to increase grants.

But if that’s the case and pensioner inflation remains higher than consumer inflation, then pensioners will only get poorer going into 2027.

The same applies for those receiving a living annuity or other retirement income.

If these monthly payments only increase in line with inflation, pensioners won’t be able to maintain their current financial commitments.

What is the government doing for pensioners?

There hasn’t been any news from the government about what it will do to improve, specifically, the lives of pensioners.

Yet, there are more than 4 million over-65s in the country.

Those receiving social assistance have desperately called for an increase.

But neither SASSA nor Treasury have acknowledged these calls.

Instead, the South African Social Security Agency (SASSA) has been reviewing Old Age grant beneficiaries and cutting off some pensioners from the R2 400 payment.

Furthermore, there was no mention of pensioners in the Medium Term Budget Policy Statement (MTBPS).

Retailers aren’t stepping in either.

Instead, they’re leaving older South Africans, many of whom aren’t in active employment, to fend for themselves.