Ensuring a Just Transition- Rethinking retirement and support mechanisms for South Africa’s older coal workers

This policy brief is the second in a two-part series derived from the report “Building a Just Future: Policy Solutions for South Africa’s Coal Workforce Transition - Insights from Global Experience”. It focuses on older coal workers, a group that is particularly vulnerable to the transition due to age related barriers to re-employment and adaptation. Drawing on international experience, the brief proposes a targeted short to medium-term support package to assist older workers who choose to exit the labour force. It identifies practical policy instruments and implementation mechanisms suited to South Africa’s socio-economic and political context, with the aim of providing policymakers with actionable options to support workers with limited prospects of future employment.

In the short term, voluntary early retirement measures, including financial bridging packages and targeted tax relief, can provide income security and support a dignified transition into retirement. However, compensation alone is not sufficient. In the medium term, transition adjustment assistance (TAA), combined with access to social and support services, can help older workers adapt to post-employment life and maintain well-being. Importantly, retirement pathways should remain voluntary, with older workers who wish to remain economically active receiving support comparable to that available to other transitioning workers. Three key policy implications emerge. First, introduce voluntary early retirement schemes before mine closures to support a proactive and managed transition. Second, ensure flexibility and fairness by adapting eligibility criteria and benefit levels as circumstances evolve. Third, design retirement and compensation measures in partnership with workers and unions to strengthen legitimacy, participation, and social acceptance.