Determinants of Participation in Occupational Pension Funds by Private Sector Workers in South Africa

This paper examines the determinants of pension participation in contributory funds by private sector workers in South Africa using Labour Force Survey data. Pension participation increases with income, education, job-tenure, firm-size and working in the formal sector. Household-size and being self-employed have a negative impact on pension participation. Policymakers will register greater success in encouraging pension participation by promoting efforts to increase incomes, improve educational outcomes and encourage job creation within the formal sector. Measures to reach the self-employed, agriculture, trade and construction sectors, and small firms should be pursued as part of efforts to expand participation.