By A Correspondent
Pensioners in Zimbabwe continue to face severe financial hardships as the country’s pension system struggles under mounting pressure, with key authorities acknowledging that benefits remain far below acceptable standards.
Speaking at the 50th annual conference of the Zimbabwe Association of Pension Funds (ZAPF) in Victoria Falls, Insurance and Pensions Commission (IPEC) director of pensions, Mr. Cuthbert Munjoma, admitted that current pension payouts are failing to meet the basic needs of retirees.
“We introduced a benefits tracker three years ago to monitor pensions on a monthly and quarterly basis,” Munjoma said. “The reality is, these benefits are falling short of reasonable expectations. We understand that there are challenges, including low contributions and issues around sustainability.”
The ongoing crisis in the pensions sector is compounded by deep-rooted issues such as unresolved compensation for value lost during past economic meltdowns, widespread governance failures, and poor investment strategies. Pensioners—many of whom devoted decades to public and private service—now find themselves unable to afford essentials, as their savings continue to be devalued.
Official statistics paint a bleak picture. By the end of December 2024, total pension contribution arrears had ballooned to US$268 million—up dramatically from just over US$6.8 million. This shortfall is largely due to employers failing to remit contributions, leaving retirees with little to fall back on.
“The arrears are deeply concerning,” Munjoma said. “We need holistic reform to restore trust in the system and ensure that pensioners are protected.”
The conference also heard from Fiona Stewart, Lead Financial Specialist at the World Bank, who underscored the importance of governance and sound investment strategies for pension fund stability.
“Diversification of investment portfolios is essential, but without strong governance, this becomes impossible,” Stewart said.
Currently, Zimbabwe’s pensions industry includes 967 registered occupational pension funds. However, only 489 of those are active, representing just over half of the sector. The remaining 478 are inactive, and 372 of them are awaiting dissolution, pending the resolution of pre-2009 compensation disputes.
Despite the Mnangagwa administration’s public commitments to economic reform, critics argue that pensioners have been left behind. Many view the situation as a reflection of broader policy failures and systemic neglect.
This year’s ZAPF conference runs under the theme: “50 Years: Shaping Tomorrow, Today – Building on the Past, Embracing the Future”. Yet for many retirees, the future remains uncertain.
“They talk of shaping tomorrow, but we can’t even survive today,” said one retired civil servant in attendance, who asked not to be named. “What kind of future are they building when the people who built this country are abandoned?”