Many key questions affecting the future retirement planning of millions of South Africans, including the controversial Katz tax recommendations, have been re-opened for debate by a parliamentary committee.
And it appears most South Africans will continue to enter old age for many years to come without a secure income.
The parliamentary finance committee's report on the recent Smith Committee investigation into retirement provision, which was tabled in parliament this week, again highlighted the need for individuals to plan an adequate pension.
Currently four out of five elderly people rely on the state old age pension of R430 a month while 40 percent of people on private retirement schemes receive less than the state pension.
The committee said the reasons why so many people on private sector funds went into old age still having to rely on state social pensions included: low wages, the recent inclusion of low paid workers on retirement schemes, withdrawal by members of benefits before retirement age because of redundancies and dismissals; the lack of provisions to allow pension assets to be transferred between jobs; and low unemployment benefits.
The report said only 74 percent of people in formal employment were covered by private retirement funds while millions in self-employment, in small industries and other informal sector activities had no pension provision and relied on the state.
After a week of hearings the parliamentary finance committee has recommended that a number of unresolved issues be referred to a small task force and a retirement provision forum.
The national forum, which was recommended by the Smith Committee of Inquiry into retirement, has received wide support and will deal with the outstanding problems.
Key issues likely to be under review at a national forum include:
* The Katz tax commission recommendations for retirement funds;
* Compulsory preservation of pension benefits on resignation or job change;
* Compulsory provision by employers of pension benefits for employees;
* Incentives to encourage provident fund members to take monthly pensions, rather than lump-sums; and
* The future of the under-funded civil service pension funds.
In its report, the finance committee said deadlines should be set for the proposed task team and forum.
Meanwhile, the finance committee has opposed, with qualifications, Smith Committee recommendations to limit state assistance to the destitute aged.
Smith wanted a 1,7 percent of the gross domestic product limit on the amount of money provided for the 1,7 million aged on social pensions.
The committee said, although it favoured some limit, it had heard evidence that the level had previously been higher. It has recommended that any pegging of the total amount be investigated by the proposed task team.
The committee did not express a view on the controversial means test which some Smith Committee members wanted scrapped and others eased.
The committee said the taxation of pension funds should be investigated by the proposed forum as it was "very complex" and could have far-reaching effects on retirement provision.