Investigating the Awareness and Understanding of Micro Pension Schemes Among the Informal Sector in Thulamela Local Municipality

In South Africa, a significant portion of the workforce operates within the informal sector; however, it remains largely excluded from formal retirement savings mechanisms. This study investigated the awareness and understanding of micro pension schemes among the informal sector in the Thulamela Local Municipality. The research adopted an interpretivist paradigm and implemented a qualitative methodology, adhering to an exploratory research framework. The investigation employed a non-probability sampling technique, specifically purposive sampling, to identify participants for comprehensive interviews. The researcher selected 12 participants, and the size was determined by data saturation. The data was collected through interviews by the researcher, who was familiar with both the study area and the languages spoken therein. The interviews were conducted in Tshivenda and were subsequently translated into English for analysis. The data was analysed manually using thematic analysis. The study found that the level of awareness and understanding of the micro pension schemes among the informal sectors is limited. The study recommended the development and implementation of focused awareness campaigns promoting the micro pension schemes, which are specifically designed for informal settings. The study advances an understanding of rural informal sector dynamics. Future research could extend the scope to include other rural and urban municipalities.