News headlines were dominated by global events in recent weeks, in particular with respect to Russia’s invasion of Ukraine, and the subsequent pullback for global markets. Although the current tension in Europe cannot be ignored and will continue to drive market volatility there is also local news that investors should take note of.
In South Africa, it often feels like good news is hard to find, but there is one very important bit of news local investors should pay attention to. In fact, we should be shouting the good news to the mountain tops about the announcement that Regulation 28 of the Pension Funds Act has been amended.
Here is what it means for the retirement savings of ordinary South Africans, and what future retirees must do next.
All retirement annuities, provident funds, and pension funds are governed by Regulation 28 of the Pension Funds Act, which, amongst other things, stipulates that one’s respective investment can only have a maximum offshore exposure of 30%, with an additional 10% for Africa (which nobody really used in the past, in any case). A few weeks ago, the limit of 30% was increased to 45%, with the Africa component falling away entirely.
Thus, this meant a 50% jump from the old 30% limit to the new 45% limit, in offshore exposure for those who want to increase their exposure to markets out of South Africa (and Africa for that case), to developed markets such as the US, Europe and the UK. Although 45% is a far cry from the 100% limit available through living annuities, the increase is certainly welcome. Below is a table comparing the returns of the past 10 years from the JSE Index, with the returns of that of the MSCI World Index and the S&P 500 Index.
| Index | 10 Year Annualised Returns (ZAR) |
| FTSE/JSE All Share total return (ZAR) | 11.64% |
| MSCI World total return (ZAR) | 19.48% |
| S&P 500 total return (ZAR) | 20.64% |
The new limit is a breath of fresh air for those who plan to meticulously contribute to their retirement savings throughout their working lives. The new limit not only enables investors to further diversify their current retirement saving investments but also enables them to hedge their future savings a bit more against the rand and the local economy, should they underperform over the long-term relative to their global peers.
What to do next will largely depend on many factors, and although there is no ‘one size fits all’ approach when it comes to investments, I would strongly advise that all those in Regulation 28 investments strongly consider their options and take advantage of the new limits.
The troubles of the local economy will continue for a long while longer, which makes it imperative for local investors to diversify away from these risks. Especially with retirement savings.
As with all investment decisions or financial planning strategies, it is advisable to navigate it with the assistance of a qualified, experienced advisor, who can offer the appropriate financial advice best suited to your personal circumstances. Read more about planning for retirement.
Megan joined the Brenthurst Wealth team in March 2026 as an Administrative and Fiduciary Services Assistant at our Val de Vie Office in the Western Cape. Prior to joining Brenthurst, Megan gained three years of experience in the retail sector, where she developed management and client service skills.
I obtained my National Diploma in Financial Information Systems from the Cape Peninsula University of Technology in 1999 and have worked in the wealth management industry since January 2000. Over the years, I have gained extensive experience in various roles, including Portfolio Manager Assistant, Planner Assistant, and Paraplanner.
Esmarelda Isaacs-Andreas joined the Brenthurst Wealth Stellenbosch office in October 2025, taking on the dual role of Receptionist and Fiduciary Administrator.
I obtained my National Diploma in Financial Information Systems from the Cape Peninsula University of Technology in 1999 and have worked in the wealth management industry since January 2000. Over the years, I have gained extensive experience in various roles, including Portfolio Manager Assistant, Planner Assistant, and Paraplanner.
Ashley joined Brenthurst Wealth in January 2025 as Office Administrative Assistant and Receptionist for the Stellenbosch Office.
René Heystek joined Brenthurst Wealth in November 2023, as receptionist and administrative assistant in the newly established George/Garden Route office.
Michelle Heystek has built a career in the financial services over the last two decades, after obtaining her B.Com degree in Financial Management in 2005. Once she joined Brenthurst in 2006, she continued her academic journey, obtaining her Certificate in Wealth Management from INSETA in 2007, followed by a Postgraduate Diploma in Financial Planning from the University of the Free State. In 2008, she earned the Certified Financial Planner (CFP®) designation.
Anelle joined Brenthurst Wealth as a Receptionist and Administrative Assistant to Brian Butchart in the Cape Town office in December 2023. She has a wealth of knowledge from working as a liaison between Financial Advisers and clients at TMA and Absa Investment Management Services (Aims) since 1998. She obtained her B. com degree from the University of Port Elizabeth in 1997.
ADMITTED ATTORNEY | FINANCIAL PLANNER & HEAD OF BRENTHURST FOURWAYS
Sanet was appointed in April 2020, joining our Cape Town team as an Executive Administration Assistant to Renee Eagar. She has been in the financial services industry since 1990. Her previous experience includes positions at Sanlam, BJM and ABSA. She spent her last 12 years working at Alexander Forbes Private Client Wealth as a Senior Wealth Management Assistant. She has received numerous accolades over the years which include but not limited to, Alexander Forbes Client Service Excellence – Silver award in 2014,2015 and 2017. Sanet has also obtained her Certificate in Wealth Management (NQF 5) in 2012 and achieved “Best Student of the Year” from Moonstone.
Maria Smit is a Certified Financial Planner® with over 10 years of experience in the financial planning industry.
