shloboe boe
Harare Bureau
THE National Social Security Authority (Nssa) is set to increase monthly pension payouts to US$100, up from the current US$60, as it progressively makes adjustments in line with its improved financial performance.
Last year, the minimum pension payouts were raised from US$20 to US$60 for retirees and to US$70 for injured workers.
Partial US dollar disbursements were introduced in 2023 to cushion pensioners from inflation and depreciation of the local currency.
In an interview with The Sunday Mail, Nssa board chairperson, Dr Emmanuel Fundira, said the authority was committed to further improving pensioners’ welfare.
“We are looking at increasing our balance sheet to levels close to US$2 billion by the year 2030,” he said.
“If we have that kind of exponential growth, it means we can attain pension payouts that can be indexed way above inflation levels.
“Because your growth has to be above inflation level to give a meaningful return to pensioners.
“And in so doing, we are looking at probably, come end of 2025, at least our pension payouts should be reaching a figure of between US$80 and US$100, depending on the performance of the investment portfolio value. This is something, which pensioners are looking out for with excitement.”
Adjustments of pension payouts to US$100 will be comparable to regional peers such as South Africa, where the maximum monthly old age pension is about R2 180 (or US$116) per month.
In Botswana, the old age pension allowance stands at BWP530 (about US$38) per month.
Nssa’s investment portfolio grew by 39 percent in 2023 and 35 percent last year to US$800 million.
This growth was accompanied by an improvement in the claims-to-contributions ratio to 53 percent.
Last year, it also improved its financial performance and boosted operational efficiency through the implementation of recommendations from a Government-initiated forensic audit completed in May 2023.
The audit, which addressed systemic issues, played a crucial role in restoring public trust in the authority.
Dr Fundira said one of Nssa’s major priorities has been improving the welfare of pensioners.
In 2024, Nssa ensured that retirement pensions increased to US$60, while injured workers’ pensions reached US$70.
“In response to economic volatility and inflation, Nssa introduced partial US dollar disbursements in 2023,” he said.
“This initiative has allowed pensioners to receive part of their benefits in a stable currency, shielding them from inflationary pressures.
“By 2024, we consistently adhered to payment schedules, which has significantly improved client satisfaction ratings.”
Nssa has also implemented reforms to ensure the sustainability of its pension schemes.
Initiatives such as introducing an indexed insurable earnings ceiling and enhancing risk-based collection mechanisms have strengthened the pension fund’s financial position, securing future payments for pensioners.
