Ageing, public finance and social security in South Africa

Abstract

South Africa has a relatively youthful population but ageing is nonetheless an important economic issue. The number of older persons is increasing rapidly, as the population starts the ageing process from a low base. The care of the white elderly in the past followed an expensive institution-based model that is now making way for a more affordable model based on greater integration of older people in the community. Both occupational/private pensions and means-tested social pensions for poor individuals are remarkably advanced for a middle-income developing country and the integration of these two modes of social security for retirement, in which the means test plays a crucial role, is problematic.