Zimbabwe is expected to lower workers’ retirement age so that it becomes congruent to the life expectancy of its citizens which now falls far below the age 65.
A Parliamentary Portfolio Committee has recommended that the National Social Security Authority reduces the retirement age to be in line with the depressed life expectancy in Zimbabwe.
In its first report on the operations of NSSA, the Portfolio Committee on Public Service, Labour and Social Welfare said the majority of Zimbabweans were dying before reaching retirement age, thereby depriving them of enjoying their benefits.
Zanu-PF MP for Gutu East, Berita Chikwama, chairs the committee that also implored NSSA to raise monthly pension payouts to at least $150 from $60.
Although 65 years is the normal retirement age, 60 years is considered the normal retirement age in terms of the National Pension Scheme while those in arduous employment like mining, agriculture and heavy truck driving can have an early retirement at 55 years.
“We hope that the ministry would seriously consider our recommendations regarding downward review of the retirement age considering the low life expectancy of Zimbabweans which, according to research, is currently estimated to be 54 years for males and, 52, 7 for females,” said Chikwama last week.
“This ultimately means most workers die before 55 years and never get to enjoy their retirement benefits.” Chikwama also urged Government to seriously consider raising monthly pension payouts.
“Increment of the monthly pension payouts would be a most welcome development for pensioners and beneficiaries as the paltry $60 hardly caters for the basic needs of families in the current economic environment,” she said.
The committee said the assurance by Public Service, Labour and Social Welfare Minister Prisca Mupfumira that the NSSA Investment Policy was under review brought hope that it would end NSSA’s failed investments. Chikwama said the undertaking by Minister Mupfumira that the NSSA board would deliberate on the need to build referral hospitals country-wide was a welcome move for workers.
The committee said there was need for further decentralisation of NSSA services despite being represented in all the provinces and sub-offices in some districts.
“However, the majority of pensioners and survivors are still referred to the NSSA head office in Harare where they are tossed from one office to the other. In short, I am saying NSSA offices should be established in all the districts of the country closer to most of its beneficiaries as on retirement, most people move from towns to reside in rural areas. NSSA should improve the quality of its services to clients,” said Chikwama.