In a landmark decision impacting millions of public servants, the Government Employees Pension Fund (GEPF) has announced a formal increase in the retirement age from 65 to 67, effective 1 August 2025. The move, confirmed by the Department of Public Service and Administration (DPSA) in partnership with National Treasury and the GEPF Board, is part of a broader national effort to strengthen pension sustainability and improve government workforce retention.
The change affects a wide swath of government employees, from teachers and nurses to police officers and court clerks, sparking widespread debate and concern—particularly among those nearing the old retirement age who had based their financial planning on exiting the workforce at 65.
What Does the New GEPF Retirement Age Mean?
From 1 August 2025, the official retirement age for all public sector employees shifts from 65 to 67 years old. This means that anyone born after 1 August 1958 will be required to serve two additional years to qualify for full pension benefits. Employees who have already initiated early retirement or exit before this date will not be affected.
Key features of the change:
- Applies across all public departments
- No change to employee (7.5%) or government (13%) pension contributions
- Medical aid and housing benefits extended to cover two additional years
- Fund liabilities expected to drop, improving long-term solvency
| Change Type | Before 1 Aug 2025 | After 1 Aug 2025 | Impact |
|---|---|---|---|
| Retirement Age | 65 | 67 | +2 years of service |
| Affected Birth Years | Born before 1958 | Born after 1958 | Applies to future retirees |
| Medical Aid Continuation | Until 65 | Until 67 | Extra 2 years coverage |
| Housing Benefit Eligibility | Ends at 65 | Ends at 67 | Extended eligibility |
| Pension Contribution Rates | 7.5% (Employee) | 7.5% | No change |
| Estimated Fund Savings | R3.1 Trillion | R2.9 Trillion | Improved fund health |
Why Has the GEPF Retirement Age Been Increased?
The government has cited multiple reasons for this historic shift:
- To ensure long-term sustainability of the pension fund
- To reduce pressure on public finances and delay additional funding needs
- To align with international retirement age trends, where 67+ is becoming the norm
- To maintain a stronger ratio of active workers to retirees
- To retain critical skills and experienced professionals longer in government service
Over 1.2 million active GEPF members and nearly 500,000 retirees are linked to the fund. By increasing the retirement age, officials aim to balance the payout structure and preserve benefit value.
How Will This Affect Your Pension Benefits?
Under the new structure, retirees will gain two more years of pensionable service, which generally leads to higher monthly payouts. However, it also means delayed access to pension income, requiring updated financial planning.
| Pension Element | Previous Rule | New Rule |
|---|---|---|
| Minimum Service Years | 10 | 10 |
| Retirement Age | 65 | 67 |
| Final Salary Calculation | Last 24 months | Last 24 months |
| Lump Sum Availability | Yes | Yes |
| Monthly Pension Formula | Years × Salary × % | Years × Salary × % |
| Medical Subsidy Duration | Until 65 | Until 67 |
| Tax-Free Lump Sum | R550,000 | R550,000 |
Benefits:
- Larger monthly pension due to extended service
- Longer contribution window from the employer
- Continued medical and housing benefits
Drawbacks:
- Delayed retirement income
- May be physically demanding for workers in frontline or labor-intensive roles
- Revisions needed in retirement planning and insurance coverage
Which Departments Are Affected?
This rule is universal across national and provincial departments, meaning every public servant is covered under the new threshold unless already retired.
Key departments impacted include:
- Department of Education – affecting 400,000+ teachers
- South African Police Service (SAPS) – officers aged 58+
- Department of Health – nurses, doctors, admin staff
- Department of Justice – legal clerks, court officials
- Department of Social Development – SASSA employees
- Home Affairs, Transport, Correctional Services, and more
Retirement Support Measures for Transitioning Employees
Recognizing the scale of the change, the government has introduced multiple support programs to help workers transition:
- Financial literacy sessions to guide pension projections
- GEPF advisors available for free consultations
- Updated online retirement calculators reflecting age 67
- Mental health and wellness programs tailored for older workers
- Optional early exit scheme for employees aged 64–65 with over 30 years of service
Deadlines and Key Actions Before Retirement
Public servants nearing retirement must take immediate action to prepare for this policy shift.
1. Verify Your Service History
Log in to the GEPF portal and confirm your employment records are correct.
2. Recalculate Your Pension
Use the revised pension calculator on the GEPF site to estimate your new payout.
3. Submit Retirement Plan Updates
All forms must now reflect age 67 as the default retirement threshold.
4. Update Medical Aid and Housing Plans
Ensure your benefit continuity extends until the new retirement date.
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5. Discuss Options with HR
Each department is required to offer personalized retirement counseling.
Deadline to opt for early exit (if eligible): 31 October 2025
Where to Get Help – Official Contact Details
For employees with specific queries, the following department-level contact points have been established:
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| Department | Contact Email | Phone Number | Hours |
|---|---|---|---|
| GEPF Head Office | [email protected] | 012 319 1000 | Mon–Fri, 8 AM–4 PM |
| Public Service & Admin Dept. | [email protected] | 012 336 1000 | Mon–Fri, 8 AM–4 PM |
| Department of Health | [email protected] | 012 395 8000 | Mon–Fri, 8 AM–4 PM |
| Department of Education | [email protected] | 012 312 5000 | Mon–Fri, 8 AM–3:30 PM |
| SAPS National HR | [email protected] | 012 393 1000 | Mon–Fri, 8 AM–4 PM |
| SASSA Employee Desk | [email protected] | 0800 60 10 11 | Mon–Fri, 8 AM–4 PM |
| Department of Justice | [email protected] | 012 315 1111 | Mon–Fri, 8 AM–4 PM |
| GEPF Portal Support | [email protected] | 012 319 1400 | Mon–Fri, 8 AM–4 PM |
FAQs – GEPF Retirement Age Change
Q1. Who is affected by the retirement age change to 67?
All government workers born after 1 August 1958, planning to retire after 1 August 2025.
Q2. Will my pension contribution change?
No. Contribution rates remain at 7.5% (employee) and 13% (employer).
Q3. Can I still retire at 65?
Yes, under the early exit option, but your benefits may be pro-rated.
Q4. Are current pensioners impacted?
No. The change only affects active public sector employees retiring from August 2025 onward.
Q5. Where can I get pension recalculation support?
Use the GEPF online portal or reach out to your department’s HR using the contact list provided.
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