Discover how South Africa’s retirement landscape is evolving, with PwC’s 2026 survey revealing significant shifts in fund governance, member behaviour, and cybersecurity challenges.
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South Africa’s retirement landscape is undergoing a profound transformation, with reforms designed to shift behaviour from short‑term consumption towards long‑term preservation, according to PwC’s eighth Retirement Funds Survey.
The survey, based on insights from 52 participating funds of varying sizes, underscores the pace of change and the pressures reshaping the sector.
Julanie Basson, retirement funds leader at PwC South Africa, says: “Change is becoming more rapid in South Africa’s retirement system, reshaping how people save, withdraw, and protect their future. Funds across the country are being pushed to rethink long‑standing practices as member needs shift and new risks emerge. Boards are adapting to how they work, how they make decisions, and how they safeguard members’ interests in a world where access to savings is easier.
"This edition of our survey captures these turning points and what they mean for members, employers, and leaders who guide the system. Importantly, the evolving landscape is also reshaping how leadership roles are viewed and rewarded, with significant changes emerging in the remuneration practices for the board of fund members and Principal Officers".
The survey reveals a marked shift in how board of fund members and Principal Officers are compensated. Payment structures are becoming more deliberate, with many funds opting for fixed fees per meeting, while others split evenly between hourly rates and retainer‑based models. Principal Officers continue to be remunerated on monthly or annual retainers, with responsibility for determining and funding these approaches shared across boards, sponsors, and funds.
90% of respondents indicated that the Principal Officer is remunerated, with 57% of boards determining the level of remuneration and 32% relying on a participating employer. Between 2023 and 2026, funds remunerating all board members rose from 16% to 25%, signalling a move towards consistency.
Funds paying only independent or professional trustees and pensioner representatives declined from 59% to 54%, while unpaid boards dropped from 26% in 2023 to 21% in 2026. Average remuneration rates varied between R2,929 and R4,727 per hour, with the highest recorded at R6,820 per hour. For fixed‑fee‑per‑meeting structures, average fees ranged from R7,690 to R15,303, with a maximum of R28,957 per meeting. “These shifts suggest that funds are re‑evaluating how they structure and support boards, moving towards balanced remuneration practices,” Basson says.
The introduction of the Two‑Pot Retirement System on September 1, 2024, has also had a significant impact, according to the survey. The system allows members to access up to a third of retirement savings from contributions made after that date, without leaving employment, for emergencies. “In our survey, 46% of the participants indicated that less than 10% of their members accessed their savings benefits in the first year of implementation.
By the second year, 54% of respondents reported that less than 10% of members had taken withdrawals,” says Basson.
Notably, 43% of respondents reported that members aged 30 to 40 years were the most likely to withdraw, reflecting mid‑career pressures and shifting life circumstances. PwC cautions that early withdrawals can erode long‑term capital, making effective communication critical to safeguard financial security, she says.
The survey further highlights the growing importance of cybersecurity in fund operations. With cyberattacks on the rise, 87% of respondents confirmed that their fund’s fidelity cover includes cybersecurity or data protection. Of these, 47% reported uncapped cover, while 40% indicated capped cover, ranging from R100,000 to R500 million.
“South Africa’s retirement funds are moving into a new operating reality. Member behaviour is changing under the Two‑Pot system; governance roles are becoming more professionalised, and cyber risk is now a standing item rather than an occasional threat. Funds that respond with clearer accountability and better member guidance can protect value for members. The evidence across remuneration practices, two‑pot system, and cybersecurity points to the same destination: better communication, clearer guidance, and the preparedness to meet what’s coming next,” says Basson.
PERSONAL FINANCE