• Only 115,226 members are contributing to private occupational pension schemes.
• This is against a total workforce of 3,456,526.
• Majority of the population risk not having adequate income when they retire.

Minister of Labour and Social Security has disclosed that only 115,226 members are contributing to private occupational pension schemes.
In a statement to commemorate the Pensions Awareness Week, Brenda Tambatamba said this against a total workforce of 3,456,526 as at June, 2021.
Ms. Tambatamba said this is an indication that that majority of employers have not taken up measures to enhance the income replacement ratio of employees in retirement.
“As such, majority of the population risk not having adequate income when they retire and thus exposing them to financial insecurity. I am therefore making a special appeal to employers to explore extending pension benefits of employees by establishing occupational pension schemes,” Ms. Tambatamba said.
She challenged Pensions and Insurance Authority (PIA) and other stakeholders to come up with modalities for extension of social security coverage through micro pensions to the informal sector.
Ms. Tambatamba stated that government is committed to improving the Pensions landscape, especially expanding Pensions services to the informal sector.

She said the new administration has placed a high premium on reforming the social security system, as it aspires to deliver a pension scheme that is adequate and relevant to the retirees.

“While we are aware of the current services being offered to the informal sector, the National Pension Scheme Authority, government is of the considered view that the services need to be expanded including participation of the private sector.”

“Another area of concern that must be addressed is general appreciation of pensions by pension participants especially women and youth,” she added.
She noted that most people, including those that contribute to Pension schemes, do not fully understand how such schemes operate and can be optimized for the benefit of citizens and the national economy.
“There is limited awareness on the governance arrangements, investment of pensions, and the transition from saving to accessing a pension after retirement,” she noted.
She further reaffirmed the Ministry’s conviction to embark on Pension reforms as a matter of urgency, stressing the need to create pension schemes that cater for the informal sector in an efficient manner.

This year’s Pensions Awareness Week is being commemorated under the theme; “Retirement is coming. Are you ready?”

The Pensions Awareness Week is in line with the national financial inclusion strategy’s objectives on financial education, aimed at promoting savings for retirement and to enhance collaboration amongst the financial services industry, businesses, employers and the government.
The Pensions Awareness Week also focuses on the need for citizens to become proactive in planning for retirement.