4 March 2026, Johannesburg: The South African retirement landscape is undergoing a rapid transformation intended to shift habits from immediate consumption to long-term preservation. PwC’s eighth Retirement Funds Survey, reflecting insights from 52 participating funds of varying sizes, highlights the scale and pace of this transformation and the pressures shaping the industry’s next chapter.
“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’ interest 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 board of fund members and Principal Officers.”
Evolving remuneration practices
While we navigate the changing retirement landscape, South Africa is seeing a shift in how board of fund members and Principal Officers are compensated. Payment structures have become far more intentional, with many funds opting for fixed fees per meeting, while the remainder remunerate equally between hourly rates and retainer‑based models. As expected, remuneration for Principal Officers remains on a monthly or annual retainer. The responsibility for determining and funding these remuneration approaches is now shared across boards, sponsors, and the funds themselves.
According to the survey, 90% of the respondents indicated that the Principal Officer of the fund is remunerated. The level of remuneration is determined by the board 57% of the time, while 32% of funds rely on a participating employer to set this amount.
Data also reveals that from 2023 to 2026, a shift towards a more inclusive board remuneration is actively progressing. Funds that remunerate all board members increased notably from 16% to 25%, pointing to a growing shift towards consistent remuneration practices. Funds that only pay independent or professional trustees and pensioner representatives dropped from 59% to 54%, suggesting a shift away from compensating a narrow group of board members only. The report further highlights that funds with unpaid boards also declined from 26% in 2023 to 21% in 2026.
The report includes the average and maximum remuneration earned by chairpersons, independent/professional, employer and member elected, and pensioner representative board members for serving on the board. Overall, the average rate per hour varied between R2,929 per hour to R4,727 per hour, with the highest rate per hour being R6,820. For funds that remunerate on a fixed‑fee‑per‑meeting basis, the average fee per meeting ranged between R7,690 and R15,303, with the maximum fee being R28,957 per meeting.
“These shifts suggest that funds are re-evaluating how they structure and support boards, moving towards balanced remuneration practices.”
“Two-Pot” shifts members’ behaviours
The Two-Pot Retirement System, introduced on 1 September 2024, is intended to enable retirement fund members to access up to a third of retirement savings from contributions after 1 September 2024, before they retire for emergencies without having to leave their job. This shift had a significant impact across the retirement industry.
“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.”
43% of respondents indicated that the average age of members who elected to have their savings benefits paid out were between the ages of 30 and 40 years. This indicated that midcareer individuals, who may be facing financial pressures or changing life circumstances, are more likely to make use of the savings withdrawal option. The consequences of withdrawing funds is crucial, as early withdrawals can significantly reduce long-term retirement capital. Effective communication is essential to prevent long-term, irreversible damage to financial security.
Cybersecurity becomes an operational priority
Cybersecurity threats and attacks have resulted in an increasing need to have cybersecurity cover. This is an insurance policy which helps manage the impact of cyberattacks on the operations of an entity. The survey reveals that 87% of the participants indicated that the fund’s fidelity cover includes cyber security/data protection. 47% indicated that the cover is uncapped while 40% indicated that the cover is capped. Where the cover is capped, the cap amount ranged from R100,000 to a maximum of R500m.
“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.”
Contact us
Verena Koobair
Head of Communications and Societal Purpose Firm Pillar Lead, PwC South Africa
Tel: +27 (0) 11 797 4873
