'Zimbabweans should not over-rely on NSSA pension scheme'

Shepherd Muperi, Director of Social Security at the National Social Security Authority (NSSA), emphasized that individuals should not rely solely on the social security scheme for their retirement needs, as it only constitutes a small portion of overall pension payouts. Speaking at a NSSA journalism mentorship program, Muperi explained that NSSA's pension contribution rate is 9% (split equally between employee and employer), which is lower than the 20% average for occupational pension schemes.

NSSA's scheme is designed to complement occupational pension funds, contributing only a fraction of the total pension income. Muperi also highlighted that the social security benefits are capped, with an insurable earning ceiling of US$700, payable in local currency at the prevailing interbank rate.

NSSA has gradually increased its contribution rates over the years, from 6% in 1994 to 9% in 2020, based on actuarial valuations. Insurance and Pensions Commission Director Sibongile Siwela stressed the need for government support to achieve universal insurance coverage, suggesting that government funding and tax collection are crucial to cover those unable to contribute.

Siwela also noted the importance of matching asset durations with liability durations in insurance and pensions, ensuring that investments generate cash flows in line with the timing of policyholder benefits and pension payments.