The most immediate impact of South Africa’s pension reform, due in September 2024, is that contributors will be allowed early access to some of their retirement savings, which could provide a near-term lift to consumption. Similar measures introduced in Chile helped to supercharge its post-pandemic recovery. But we doubt the same would happen in South Africa. Over the long-run, if the reform is successful in its aim of raising retirement savings, the government’s fiscal position, overall investment and potential growth could all see improvements.
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