A hard-hitting reminder
The Allan Gray Retirement Benefits Conference 2025, themed Through the Noise, opened with a hard-hitting reminder: the retirement industry cannot afford to stand still in the face of regulatory change, technological disruption, and global uncertainty.
One of the most compelling voices on Day 1 was Uche Enemchukwu, Chief Executive Officer and Founder of Nelu Diversified Solutions. Her message was simple yet profound - technology, and in particular Artificial Intelligence (AI), is already reshaping access to retirement benefits in emerging markets, and South Africa would do well to take notice.
The global pension challenge
The starting point, Enemchukwu explained, is sobering. “More than half of the world’s population owns smartphones and new, innovative apps are popping up daily. What can the proliferation of tech solutions in emerging markets teach the developed world about casting a wider net to increase coverage and communication with participants?”
The pension gap is not unique to South Africa. Across the world, millions of workers remain uncovered by formal retirement schemes, either because they are in informal employment, lack access to financial products, or cannot afford contributions. Yet, as Enemchukwu stressed, the tools to reach them may already be in their hands - quite literally, in the form of mobile phones.
Case studies in innovation
Enemchukwu presented two case studies from developing markets that illustrate just how powerful technology can be in bridging the retirement access divide. While the specifics of these examples were rooted in markets outside South Africa, the principles are universal: meet people where they are, leverage data to personalise solutions, and use AI to close communication and trust gaps.
The first case highlighted how mobile money platforms can double up as pension contribution channels. In markets where traditional banking penetration is low, but mobile wallet usage is high, workers can now make micro-contributions to retirement savings directly from their phones. “This is not just about convenience,” Enemchukwu noted. “It’s about inclusivity. It allows millions of previously excluded individuals to participate in the retirement system for the first time.”
The second case focused on AI-driven communication tools that help participants better understand their retirement options. Using natural language processing, these platforms can provide real-time, personalised responses to members’ queries in their local language. “The lesson here is that financial literacy doesn’t always require a classroom,” said Enemchukwu. “AI can deliver education in a format that is accessible, understandable, and available when the participant needs it most.”
The South African context
South Africa’s retirement industry is no stranger to reform. The Two-Pot Retirement System, which took effect on 1 September 2024, represents a seismic regulatory shift intended to balance short-term financial flexibility with long-term retirement adequacy. While the framework has now been implemented, the industry is still navigating the early stages - educating members, refining processes, and adapting systems to handle withdrawals and contributions under the new structure.
Yet even with this reform, coverage remains stubbornly low. Fewer than half of South African workers save consistently for retirement, and participation among informal workers is minimal.
For Enemchukwu, this is precisely where the lessons of emerging markets resonate. “South Africa has an opportunity to leapfrog some of the structural barriers that developed economies have faced. With high mobile penetration and increasing digital literacy, the building blocks for tech-enabled pension inclusion are already in place,” she emphasised.
Technology as an equaliser
One of the striking themes in Enemchukwu’s talk was the idea of technology as an equaliser. By using mobile platforms and AI, retirement funds and service providers can reduce cost-to-serve, making it viable to reach smaller contributors who would otherwise be left out of the system.
She argued that this could be transformative in contexts like South Africa, where income inequality and informal employment dominate. “If we continue to build retirement solutions only for the formally employed middle class, we will keep widening the gap. But if we build with technology at the centre, we can bring more people into the fold,” she said.
Enemchukwu also underscored the role of data analytics in improving pension outcomes. By collecting and analysing member behaviour data, funds can design products that reflect actual needs and realities. For instance, patterns of irregular income in the informal sector could inform flexible contribution models, rather than rigid monthly payments.
She noted: “Data allows us to design solutions that are pragmatic, not theoretical. It tells us what people can realistically contribute, how often, and through what channels. This is critical if we are serious about closing the pension gap.”
Challenges to overcome
Of course, adopting these solutions is not without its challenges. Enemchukwu cautioned that trust, regulation, and digital literacy are all potential stumbling blocks. South African regulators will need to balance innovation with consumer protection, ensuring that tech-enabled solutions do not expose vulnerable workers to fraud or mis-selling.
“Technology alone cannot fix pensions,” she warned. “It has to be part of a broader ecosystem that includes regulatory support, financial education, and partnerships between public and private sectors.”
Equipping advisers with AI
The pension system is evolving, and clients are increasingly expecting tech-enabled solutions that are transparent, affordable, and easy to use. Intermediaries who embrace AI-driven tools will be better placed to engage clients in new ways, particularly younger workers and those outside the formal system.
Advisers may also play a critical role in bridging the trust gap. While AI can provide scalable information, many participants BREAK still want human reassurance when making long-term financial decisions. The future, therefore, is not about replacing advisers with AI, but equipping advisers with AI to extend their reach and relevance.
Importantly, fiduciaries must remain cognisant of their responsibilities, which cannot be delegated away through technology or AI, but can be supported by these tools to enhance oversight and decision-making.
Looking ahead
As day one of the Allan Gray Retirement Benefits Conference showed, the retirement landscape is shifting fast. For South Africa, the challenge is not whether to adopt technology in pensions, but how to do so inclusively and responsibly.
Enemchukwu left the audience with a powerful thought: “The potential for scaling in markets like South Africa is immense. The tools are here. The question is whether we have the will to use them.”
Writer’s Thoughts
Technology has given us the tools to reach those long excluded from the retirement system, but inclusion won’t happen by accident. As South Africa navigates reform and innovation, the question is no longer what’s possible, but whether we’re bold enough to act. Please comment below, interact with us on Twitter at @fanews_online or email me your thoughts [email protected]
