SWAKOPMUND – Pension funds fulfil an important role in the economy by channelling the current pension savings into investments in financial assets and subsequently transforming these assets into a predictable post-employment income for many around the globe.
This is according to the Minister of Finance Saara Kuugongelwa-Amadhila who was guest of honour at a two-day international forum on private pensions held in Swakopmund last week. Participants who came from different countries gathered to seek collective strategies of improving the role of saving for retirement.
The 32 representatives are affiliated to the International Organisation of Pension Supervisors (IOPS) and hailed from Kenya, Australia, Germany, Mauritius, South Africa, Mexico and the Netherlands to name a few.
Kuugongwela-Amadhila said issues surrounding pension funds are multi-faceted and affect many institutions and households, and it therefore made sense to organise such a forum.
She also said many do not understand the impact retirement savings and investments have on the lives of ordinary people.
“Pension funds provide a range of contingencies, which may otherwise adversely affect household consumption. Uncertainty over the time of death, disability, retrenchment, pension, is a primary factor explaining the establishment of a pension plan. However the main goal of pension reform is to achieve adequate, affordable, sustainable and robust pensions while at the same time contribute to economic development,” the minister explained.
Referring to Namibia, Kuugongelwa-Amadhila said pension reforms in the country cannot be seen in isolation from a broader social safety net reform, as the country has a number of social safety net programmes benefiting different groups of populations considered to be at risk or suffering from a form of vulnerability.
She also pointed out that pension funds play a key role in developing the financial sector of a country.
According to her the pension fund industry in Namibia has grown tremendously.