Big old-age grant increase coming for pensioners

September 9, 2026 · The South African

Pensioners are struggling under the rising cost of living and an old-age grant that barely covers the essentials.

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But there’s hope at the end of the tunnel.

Next year, pensioners can look forward to an increase.

The numbers suggest pensioners should expect a bigger boost than this year.

Old-Age Grant Increase

Every year, the Minister of Finance announces an increase to grants.

Earlier this year, the minister increased the old-age grant by R85 for pensioners under 75.

Pensioners over 75 got an additional R20.

The process seems random.

But National Treasury creates a budget years in advance.

Sometimes Treasury updates the budget based on new information.

But if the government keeps its plans shown in the 2026 budget, Pensioners can expect a R100 to R120 increase next year.

National Treasury will likely give old-age beneficiaries under 75 a R100 increase and those over 75 a R120 increase.

This should bring the old-age grant up to between R2 500 and R2 520.

This is an increase of between 4.2% and 5%.

To find out how much National Treasury will give pensioners, start by analysing what they did in the past.

Focus on what they did between 2025 and 2026.

YearGrant BudgetNumber of Old-Age Grant Beneficiaries2025R115.7 billion4.19 million2026R121.8 billion4.26 million2027R129.6 billion4.33 million

In 2026, National Treasury increased the old-age grant amount by the percentage difference between the number of grant beneficiaries and the budget.

Treasury expects the number of beneficiaries to increase by 1.62% in 2027.

But pensioners will be glad as the government expects to increase spending on this grant by 6.2%.

YearBudget IncreaseBeneficiary IncreaseDifference20265.14%1.60%3.54 Points20276.20%1.62%4.58 Points

Nothing is set in stone.

The government still has five months to decide what it will do.

If the South African Social Security Agency (SASSA) saves enough money by verifying grants, this number could increase.

That would be an increase of R2 600 (108.35%).

The government has never increased grants by that much.

But that could change.

Pensioners can always petition the government for more money.

An election year can be the best time to do that.