Securing Your Future: A Miner's Guide to South African Pensions

Doesn't matter is you're a site engineer, mechanic, supervisor, or safety officer if you work in the South African mining sector, your contribution keeps the industry moving. Long shifts, demanding environments, and high-pressure responsibilities are part of the job. But when it comes to your future, taking the time to plan for retirement is just as important as any worksite checklist. We understand the fast-paced, high-stakes environment mining professionals operate in. That’s why we’ve put together this practical guide to help you make sense of your pension options and prepare for a stable, secure retirement - starting today.

It’s easy to put off thinking about retirement - especially when project deadlines and production targets demand your attention now. But the reality is; in the mining environment, early retirement is common, and occupational risks are part of the equation. Starting your retirement planning early helps ensure financial stability and peace of mind when the day comes to hang up the overalls.

Most professionals working in the mining industry are enrolled in either pension or provident funds through their employers. Both types are overseen by the Financial Sector Conduct Authority (FSCA), which ensures transparency, regulation, and protection under the Pension Funds Act. Here are the most common options:

The New “Two-Pot” System (Effective September 2024)

South Africa’s retirement framework has changed significantly. Under the Two-Pot System:

• You’ll be able to access up to 10% or R30,000 (whichever is lower) from your existing fund for emergencies
• Going forward, all new contributions will be split into a retirement pot (preserved until retirement) and a savings pot (accessible under certain conditions)
• Think before you withdraw. These are not free funds - they’re taxable and will impact your future retirement total.
• Avoid the Urge to Cash Out When Changing Jobs

Switching employers, whether voluntarily or due to retrenchment, can be a turning point. But withdrawing your pension may:

• Trigger unnecessary tax
• Wipe out your compound interest gains
• Set you back financially in a big way

Instead, transfer your savings to a preservation fund or your new employer’s pension scheme. Track Down Unclaimed Benefits. Billions of rands in pension funds remain unclaimed in South Africa especially in industries with high turnover like mining and construction. If you or a family member previously worked on a mine:

• Check with TEBA, Sentinel Retirement Fund, or FSCA
• Be ready with your ID, work history, old payslips, or benefit statements

Know Your Fund

Don’t just glance at the deduction line on your payslip. Make sure you know:

• Which fund you're contributing to
• How much is being contributed (by both you and your employer)
• The fund's investment performance and risk profile
• How and when you can access the benefits
• What your annual fund statement actually tells you

Healthcare: A Hidden Retirement Cost

Engineering and technical work on mines may not be as physically taxing as underground mining but it’s still tough on the body. Prepare for future medical expenses with:

• A reliable medical aid scheme
• Gap cover to fill the holes left by standard benefits

Talk to a Financial Advisor

The retirement system is changing, and your job structure might include contract work, fixed-term placements, or non-standard benefits. A qualified financial advisor can help you navigate the details and make smarter long-term decisions.

Top Up When You Can

Even if your employer provides a solid pension structure, it’s wise to boost your retirement pot with:

• Tax-Free Savings Accounts (TFSAs)
• Retirement Annuities (RAs)
• Small, consistent investments today grow into a meaningful safety net tomorrow.