Pen­sions grow well

The Witness - - YOURMONEY -

PRI­VATE­ pen­sions­ have­ grown­well­over­the­last­five­years­and,in­some­ways,­are­out­pac­ing­take­home­pay.

This­ can­ be­ seen­ in­ the­ Fiveyear­Pri­vate­Pen­sions­Re­view­forSouth­Africa,­re­leased­by­BankservAfrica­and­Economists.co.za­yes­ter­day.

“The­ BankservAfrica­ Pri­vatePen­sions­In­dex­(BPPI)­is­the­first­time-series­ on­ pri­vate­ pen­sion­sas­paid­into­bank­ac­counts,­in­the­world.­The­sys­tem­ac­counts­for900­000­ peo­ple­ re­ceiv­ing­ pri­vatepen­sions,­ of­ whichBankservA­ frica­ cap­tures680­000,­ or­ 75%,”­ Sherg­er­anNaidoo,­head­of­stake­holder­en­gage­ment­at­BankservAfrica­saidin­a­state­ment.­South­Africa­hold­s­the­eighth­largest­pen­sion­fun­das­sets­in­the­world.

The­in­dex­pro­vides­a­month­lyview­ of­ pri­vate­ pen­sions’­ per­for­mance­and­trends­in­South­Africa.

Ac­cord­ing­to­BankservAfrica’sdata,­in­Jan­uary­2013,­59,1%­of­all­pri­vate­ pen­sion­ pay-outs­ were­less­than­R4­000­per­month.

About­30%­of­pen­sion­ers­re­ceived­R4­000­to­R10­000­while­just­ un­der­ 10%­ were­ paidR10­000­to­R25­000.

Only­0,8%­were­paid­R25­000to­R50­000­while­0,3%­re­ceive­dover­R50­000­in­their­bank­ac­counts­for­the­month,­said­MikeSchüssler,­ chief­ econ­o­mist­ atE­conomists.co.za

By­Fe­bru­ary­2018­the­share­of­pri­vate­pen­sion­ers­re­ceiv­ing­lessthan­ R4­000­ dropped­ to­ 43%,while­34,1%­re­ceived­R4­000­toR10­000,­said­Naidoo.

The­share­of­pri­vate­pen­sion­sre­ceiv­ing­be­tween­R10­000­andR25­000­ dou­bled­ to­ 20,6%­ in2017­from­less­than­10%­in­Jan­uary­2013.­­The­same­also­oc­curred­for­ those­ re­ceiv­ing­ R25­000­ toR50­000,­which­went­from­0,8%share­of­pri­vate­pen­sions­to­2,1%,with­those­re­ceiv­ing­more­thanR50­000­ per­ month­ in­creas­ings­lightly­to­0,4%­from­0,3%.

The­value­of­the­av­er­age­pri­vate­pen­sion­pay-outs­in­creasedby­50,1%­be­tween­Jan­uary­2013and­ Fe­bru­ary­ 2018­ in­ nom­inal­terms.­In­real­terms,­the­five-year­aver­age­value­of­pri­vate­pay­mentsin­creased­by­15,2%.

In­Fe­bru­ary­2018,­the­typ­i­cal­pri­vate­ pen­sion­ pay-out­ wasR4­870­per­month.

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