Comparing SASSA Government Pensions to the Rest of the World’s
As part of social welfare, pensions give retirees financial security and stability. South Africa’s social agency (sassa) is one of the best programs whose point is to help aged natives. What does Sassa’s state pension scheme look like compared to similar schemes?
In this article, I will talk about the comparison of Sassa government pensions to another similar scheme. We examine factors such as coverage, benefits, and percentage of national GDP allocated in a comprehensive comparative study.
Sassa government pensions
Sassa government pensions score 29 out of 40 on a global index, placing them in the bottom half.
Government pensions offered by Sassa are rated below average by the South African Social Security Agency. The grades awarded from A to E, we take a C grade and position 29 out of 40 nations assessed. “As a consequence, we observe that the system includes certain positive aspects, yet it also encompasses significant risks and deficiencies that necessitate our attention.”
Both of us in the ranking are Brazil and Italy and interestingly, our ranking is higher than global south and BRICS+ partner, India, which is in the 38th position. To improve sassa government pensions, the following measures are recommended:
- For low-income households, the government needs to increase the pension of these natives.
- Decrease household debt overall.
- For pensions, there needs to be increased coverage and levels of contribution.
- Need to increase their income by making a retirement savings plan.
- They are reducing overall household debt.
- Contribution levels and coverage levels for pensions need to be increased.
Global rank
The top-ranked countries in the global rank are the Netherlands, Iceland, and Denmark, which have taken an A grade in the global index since 2015. Among the only three nations to do so, an A grade means: “which provides a first-class, reliable retirement system, Stability, and high moral standards ”. Compared to a cross-section of countries, here is how Sassa’s government pensions rate.
| Rank | Nation | Score | Grade |
|---|---|---|---|
| 1. | Iceland | 84.2 | A |
| 2. | Netherlands | 83.5 | A |
| 3. | Denmark | 82.0 | A |
| 4. | Israel | 77.1 | B+ |
| 5. | Norway | 75.2 | B+ |
| 6. | Australia | 75.0 | B+ |
| – | – | – | – |
| 28. | Brazil | 54.7 | C |
| 29. | South Africa | 53.6 | C |
| 30. | Italy | 53.4 | C |
| – | – | – | – |
| 38. | India | 43.3 | D |
| 39. | Philippines | 42.7 | D |
| 40. | Argentina | 41.5 | D |
How Sassa compare to the world
First, see the amount paid by the government for a state old-age pension. After April 2024 in South Africa, the Sassa grant will pay old-age pensions R2 180 (60 years of age) and R2 200 (75 years of age). In 2022 in the UK, the per week flat-rate state pension was £185 which is more than by 4, and at the current exchange rate you obtain £740, or R17 851 per month.
That shows a huge discrepancy against Sassa state pension: approximately eight times less. Additionally, many UK pensioners have access to a personal pension earned throughout their working careers to supplement this income.
The research document doesn’t even list the highest pension:
- Denmark: £1 440 per month (R34 742).
- Ireland: £1 012 per month (R24 465).
- Netherlands: £948 per month (R22 872).
- United Kingdom: £740 per month (R17 852).
- South Africa: £91 per month (R2 200).
Percentage of national GDP
Another interesting difference between countries is the amount of social expenditure on state pensions. Recently 3.6% of gross domestic product (GDP) was allocated to Sassa state pension in South Africa. Somewhere else, percentages look like this (as of 2017):
- 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%
The quick snapshot says what of Sassa state pension versus the world, can it be improved and what should be done for the support of South Africa’s 4 million elderly. Absolutely, in these countries, the cost of living does differ significantly. But for all its “pro-poor policies”, despite doubling its GDP contribution to social welfare, the national budget still falls short of European standards.
Conclusion
In the conclusion of the article, I explain the comparison of Sassa government pensions to the rest of the world. If you have some questions related to this article feel free to comment to me I will solve your problem.
