Large cash transfers to the elderly in South Africa

This paper critically examines the social pension system for the elderly in South Africa. The paper explores the impact of this cash transfer on allocation for food, schooling, transfers and savings.

The paper begins by giving an overview of the social pension scheme in South Africa and how it operates. The paper then analyses its impact on such areas as health, education, child health and nutrition, and food. The paper concludes that the scheme has positive outcomes in many areas:

• it has proved effective in reaching the poorest households and those with children
• about three times as many women as men benefit from the pensions. This is due to differences in life expectancy, the qualification age between women and men
• the pension system has proved efficient in reaching those living in remote areas, and in verifying eligibility requirements
• pension income is spent in much the same way as other forms of income

[adapted from authors]

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