A new report by Allianz, an international financial services provider, has revealed that retirees in several African countries are among the poorest globally. The report, which surveyed 75 countries, including five in Africa, cites an ineffective pension system and a lack of adequate retirement benefits as the major reasons for the alarming trend. In Egypt, for instance, the report notes that the gross benefit level is merely 18%, leaving many senior citizens struggling to make ends meet. Similarly, South Africa has a low benefit ratio of 22%, while Nigeria’s benefit ratio is only 16 per cent. Mauritius, on the other hand, fared better with a benefit ratio of 39%. According to the report, an ideal pension system should provide a benefit ratio of between 40 per cent and 60 per cent of an average wage, with public pensions often being the only source of income in old age. However, many African countries fall short of this standard, leaving retirees in a precarious financial situation. The report highlights several factors that contribute to the problem, including the inability of local pension schemes to mobilize adequate funds, a lack of legal mechanisms to delay retirement, and the absence of a proper ratio between current and future pensioners. In addition, poor monthly contributions by workers and low pension coverage are also cited as major challenges in many African countries.
