It’s time to rethink retirement in SA

WHEN should we stop working? It is a question that many South Africans encounter at some point, yet the answer is increasingly complex and deeply personal.

- JENNIFER REDDY

Let us first clarify what the law states regarding retirement age in South Africa. There is no universal retirement age mandated by South African law. In the private sector, the retirement age is determined by employment contracts, company policies, or pension fund rules. If these terms are not specified, section 187(2)(b) of the Labour Relations Act stipulates that it is only legally fair to dismiss an employee on the grounds of age if they have reached the “normal or agreed retirement age” for their specific role.

In the public sector, the governing legislation is the Public Service Act of 1994, which establishes the normal retirement age at 60. It also permits early retirement starting at age 55. These provisions have remained unchanged.

Traditionally, retirement has been linked to a specific age, often 60 or 65, when individuals typically leave formal employment. This model may have been more appropriate for previous generations when life expectancy was shorter, pension systems were more generous, and extended family support networks were stronger.

However, times have changed. Many South Africans now struggle to afford retirement at this age due to various modern challenges, including social, economic and personal circumstances. The question should not be: “How old is too old to work?”

Instead, we should ask: “Is the individual still capable, passionate and productive?”