The Impact of the Old Age Grant on Rural Households in Nkonkobe Municipality in the Eastern Cape Province of South Africa

The aim of this study was to explore the socio-economic impact of old age grant on rural households in the Eastern Cape Province, South Africa. The findings of this paper are based on in-depth interviews conducted with twenty-five beneficiaries of the Old Age Grant (OAG) in Alice. They were purposively selected to gauge the impact of this grant on their households. The results show that the OAG plays a vital role in households by contributing significantly to household expenditure. This grant assists in the provision of food, payment of school fees, transport, rent and water as well as the purchase of uniforms, books, electricity and other necessities. The OAG which was intended as a poverty relief programme for the aged has turned into a poverty alleviation programme for rural households. When they live together with other generations these pensioners become the primary caregivers in the household and they act as breadwinners by looking after their unemployed children, orphans, grandchildren and other relatives. DOI: 10.5901/mjss.2013.v4n13p62