Johannesburg - Pension increases continued to outpace inflation, according to data by BankServAfrica on Wednesday.
Monthly pension payouts grew by 9.2 percent in August. After inflation, pension payouts increased by 3.8 percent.
At the same time, salary increases beat inflation by 3.3 percent in August.
The average disposable salary paid via BankServAfrica was R13 108 or a 8.6 percent higher than a year ago.
“Pension assets are no longer growing at over 9 percent though, so there will come a time when 9 percent plus increases will no longer be possible. But there is no clear indication of when that might occur,” Mike Schussler, the chief economist at Economists.co.za, said.
The economic consultancy helped develop the BankServAfrica private pension index. According to the index, the average pension stood at R5 873, while the typical, or median, pension was R3 904 for August. The median is the number that is halfway in a set of numbers.
“The increases in private pension payments have generally been higher than the increases on salaries for working people, although pensions are still less than half of what salaries are.”
BankServAfrica said in 2013 the Financial Services Board had reported that almost 810 000 people were receiving private pensions, and with the index registering 655 000 pensions every month, it was clear this sample was 81 percent of the pensioner group.
It said the fastest growing age group in South Africa was those over 65 years old, a group which, according to the latest population estimates, grew by 3.3 percent over the past 12 months, while the overall population only grew by 1.7 percent.
BankServAfrica said: “The population over 65 years old has been growing by at least 3 percent for 12 years, and is becoming increasingly important as they make up a large portion of the economy.
“Only around 5 percent of this group still work, with the rest being on pension. However, in general, this section of the population is more inclined to vote and influence their communities for the better.”
BankServAfrica said the share of pensioners getting less than R4 000 a month had declined 9 percent in just over two-and-a-half years.
BUSINESS REPORT