For the past 15 years covering South African labour and treasury policy, I’ve seen more retirement-age rumours than actual reforms — until now. After months of closed-door Nedlac talks and two successive medium-term budget speeches that danced around the issue, National Treasury has finally put it in writing: South Africa is raising the retirement age starting in 2025, and the process begins sooner than most workers expected.
I’ve been through the 2007 “early retirement penalty” debates, the 2013 auto-enrolment discussions that never materialised, and the 2021 two-pot system that finally saw daylight. This one feels different — it’s happening.
The Official Timeline (Confirmed October 2024 MTBPS)
- 1 April 2025 – Minimum early retirement age for pension and provident funds rises from 55 to 60
- 1 April 2027 – Normal retirement age for most funds moves from 60/65 to 65 (gender-equalised)
- 1 April 2030 – Final increase to 67 for everyone
Yes, you read that right. The “normal” retirement age of 60 for men and 55/60 for women that most of us grew up with is being phased out completely.
Why Now? The Numbers Don’t Lie
I’ve sat through enough Treasury briefings to know they don’t move unless the actuarial models scream. Here’s what’s driving this:
- Government Employees Pension Fund (GEPF) liability now exceeds R2.3 trillion
- Old Age Grant (currently R2 180 for 60–74 year olds) becomes R2 200 at 75 — the infamous “grant cliff” costs billions
- Life expectancy for someone reaching 60 today is now 19–21 additional years (Stats SA 2023)
- Only 6% of South Africans can retire comfortably (2024 Alexander Forbes Benefits Barometer)
Treasury’s own words in the 2024 MTBPS: “A gradual increase in the retirement age is unavoidable to protect fiscal sustainability.”
How It Affects Different Retirement Vehicles
| Retirement Vehicle | Current Normal Age | New Normal Age (2030) | Early Access Age from 2025 |
|---|---|---|---|
| Pension / Provident Funds | 60 or 65 | 67 | 60 (was 55) |
| Retirement Annuities (RA) | 55 | 67 | 60 |
| Government Employees (GEPF) | 60 (or 55 with 10 yrs) | 67 | Still rule-of-90 applies |
| Private “55 funds” | 55 | Phased out entirely | 60 minimum |
The Two-Pot Silver Lining Most People Miss
Remember the two-pot retirement system that started 1 September 2024? That accessible “savings pot” (max 10% up to R30 000 per year) suddenly becomes far more valuable when you realise you might have to wait until 67 for the bulk of your money.
I’ve already seen financial advisors restructuring client portfolios: max out the savings pot every year because it’s now your only liquidity before 67.
Winners and Losers (The Uncomfortable Truth)
Winners
- High-income professionals who planned to work longer anyway
- Anyone already on a Rule-of-90 public sector package (GEPF members retiring at 55–60 still can if they hit the formula before 2030)
- The fiscus — Treasury estimates R18–22 billion annual saving by 2035
Losers
- Manual labourers and mineworkers — bodies don’t last till 67
- Women who historically retired at 55–60
- Anyone banking on the “55 and free” RA strategy
What Should You Do Before 31 March 2025?
I’ve been giving the same advice on radio and in newsrooms for weeks:
- Check your fund’s current retirement age — many company funds are still 60, some already 65
- If you’re 53–58, consider accelerating retirement before the early-access age jumps to 60
- Max your two-pot withdrawals strategically in 2025/26 tax year
- Speak to your HR about possible “early retirement windows” — some parastatals are quietly offering packages before the rules harden
FAQ – South Africa Retirement Age Changes 2025
Q: Is the old age grant age also increasing?
A: Not yet. Currently still 60. Treasury has only “flagged for discussion” aligning it later.
Q: Can I still retire at 55 if my fund rules say so?
A: No. From 1 April 2025, SARS will no longer recognise any early retirement before age 60 for tax purposes. Your fund rules will be forced to comply.
Q: What about people already receiving annuities?
A: Grandfathered. If you’re already retired or drawing an annuity, nothing changes.
Q: Will employer retirement subsidies change?
A: Many will. Several JSE-listed companies have already notified unions they’ll reduce risk benefits post-65.
Q: Is this law yet?
A: The policy is confirmed in the 2024 MTBPS and will be legislated in the 2025 Taxation Laws Amendment Bill (expected February 2025).
I’ve covered enough budget speeches to know: once it’s in the MTBPS in black and white, it’s happening.
The South Africa we grew up in — where 60 meant golf and grandchildren — is officially over. The new reality is working longer, planning harder, and hoping your knees hold out till 67.
