Industry overview
As of 2023, South Africa’s pension sector managed assets worth R5.8 trillion ($319 billion) across 4,904 registered retirement funds. The total membership stood at 18.6 million, representing nearly 45% of the working-age population of 41.6 million. Similarly, the total amount of contributions in 2023 came to R306 billion ($17.8 billion) - a figure equal to 4.6% of the country’s GDP.
Since 2012, the South African retirement industry regulations have evolved. This was in response to the transition from a landscape dominated by employer-sponsored schemes to a more sophisticated, regulated market where employers are outsourcing retirement management services.
The number of funds has declined as expected due to consolidation, with many employers shifting into umbrella structures (from 774 in 2015 to just 254 by the end of 2024) for efficiency and regulatory compliance. There has been enhanced regulatory oversight through the Financial Sector Conduct Authority (FSCA), which has made employers wary
