Africa’s Pension Crisis: Why Growing Old Still Means Growing Poor

Only 22.3% of the elderly in Sub-Saharan Africa receive a pension, compared with a global average of 79.6%, according to the ILO World Social Protection Report (2024–26). This single figure highlights a growing social and economic crisis that affects millions of older people across the region.

A Crisis Hidden in the Numbers

In most parts of the world, pensions guarantee income and dignity after retirement. In Sub-Saharan Africa, this safety net is missing for the majority. Only one in five older adults have access to any pension. The rest must rely on family members, informal work, or community support to survive. Globally, nearly four in five seniors are covered, revealing a gap of more than fifty percentage points.

Why Pension Coverage Remains Low

Several long-standing challenges explain the gap in pension access. First, over 80 percent of workers in Sub-Saharan Africa are employed in the informal sector, which means they are excluded from contributory pension systems. Second, many governments face fiscal limitations and competing national priorities, leaving little room to expand social protection. Third, pension schemes in many countries remain limited to public sector or formal employees, excluding millions of people who work in agriculture, trade, or small enterprises.

The Cost of Doing Nothing

The absence of adequate pension systems has both social and economic consequences. Without secure income in old age, poverty among the elderly is rising, and younger family members are forced to take on the financial burden of care. This reduces savings, limits investment, and increases dependence on public welfare systems. With the elderly population in Africa expected to triple to more than 220 million by 2050, the current system will not be able to absorb the pressure.

Building a More Secure Future

Improving pension coverage in Sub-Saharan Africa is both a social and economic priority. Governments can use digital tools to extend pension registration to informal workers, introduce or expand non-contributory pension programs, and build stronger administrative systems to ensure transparency. Regional collaboration, led by institutions such as the African Union and the International Labour Organization, can help countries share solutions and scale successful models. Examples from Kenya, Rwanda, and South Africa show that progress is possible when policy innovation meets political commitment.

Conclusion

A secure retirement should be a right, not a privilege. Expanding pension coverage in Sub-Saharan Africa will not only protect the elderly but also strengthen families, reduce poverty, and create a more resilient economy for future generations. Follow Finex Skills Hub for more data-driven insights on Africa’s economy, people, and policies.