Pension fund crisis in South Africa

Breach threatens the financial security of nearly 600 000 workers

- THABO MAKWAKWA

SOUTH African pension crisis deepens as defaulting employers double.

(DENIS FARRELL AP)

THE Congress of South African Trade Unions (COSATU) has issued a stark warning about the rapidly growing problem of employers defaulting on pension fund contributions, a breach that threatens the financial security of nearly 600 000 workers across key sectors.

In a statement released yesterday, COSATU spokesperson Zanele Sabela revealed that the number of employers failing to pay workers' deducted pension contributions has more than doubled since last year.

According to the latest Financial Services Conduct Authority (FSCA) report, 15 521 employers are now in default - up from 7 700 in 2024 and dramatically higher than the initial 4 000 reported in 2023.

"This disturbing trend places the livelihoods and futures of hundreds of thousands of South African workers at risk," Sabela said.