Shepherd Muperi, the Director of Social Security at the National Social Security Authority (NSSA), recently underscored that individuals should not depend solely on the social security scheme for their retirement. Speaking at a NSSA journalism mentorship program, Muperi explained that the NSSA’s pension scheme constitutes only a small portion of overall retirement income.
1. **Contribution Rates**: The current NSSA pension contribution rate is set at 9%, with an equal split between employees and employers. This rate is significantly lower than the 20% average typically seen in occupational pension schemes. Muperi pointed out that the social security scheme is intended to serve as a supplementary source of income, rather than the primary one.
2. **Caps and Limits**: NSSA’s benefits are capped, with an insurable earning ceiling of US$700. Payments are made in local currency at the prevailing interbank rate, which can affect the actual value received by beneficiaries.
3. **Historical Adjustments**: The contribution rate has been increased gradually over the years, rising from 6% in 1994 to 9% in 2020, based on actuarial valuations and the need to align with changing economic conditions. Sibongile Siwela, Director of the Insurance and Pensions Commission, also spoke on the subject, emphasizing the need for broader support to achieve universal insurance coverage. She highlighted the following points:
1. Government Support: Siwela stressed that government funding and effective tax collection are essential to cover individuals who are unable to contribute to pension schemes. This support is crucial for achieving comprehensive insurance coverage across all demographics.
2. Asset-Liability Matching: She also emphasized the importance of aligning asset durations with liability durations in insurance and pensions. Ensuring that investments generate cash flows that match the timing of policyholder benefits and pension payments is vital for the stability and effectiveness of pension schemes.
Both Muperi and Siwela’s remarks underscore the importance of a multifaceted approach to retirement planning. While NSSA provides a valuable safety net, it should be complemented by additional savings and occupational pensions to ensure a more secure financial future in retirement. The focus on improving contribution rates and achieving universal coverage reflects ongoing efforts to enhance the social security system and provide better support for all Zimbabweans.
In other news – Saintfloew’s August shows postponed
Nash TV, owned by businessman Tinashe Mutarisi, who also manages musician Saintfloew, has announced the postponement of the artist’s shows scheduled for August. The network issued a statement informing fans of the changes:
“We regret to inform you that the Kwekwe Show, initially set for August 16, has been rescheduled to September 7. Similarly, the Zvishavane show, originally planned for August 17, will now take place on September 6. Read More
