Published: 16 May 2025

Pension benefits in Zimbabwe remain below expectations despite ongoing reforms, the Insurance and Pensions Commission (IPEC) has revealed.

Speaking at the 50th annual conference of the Zimbabwe Association of Pension Funds (ZAPF) held today in Victoria Falls, IPEC Director of Pensions, Mr Cuthbert Munjoma, said a benefits tracker introduced three years ago showed pension payouts have not met reasonable levels.

"Three years ago, we introduced a benefits tracker, which monitors pension benefits monthly and quarterly," Munjoma said. "The benefits are not meeting reasonable expectations. We do understand this is due to a number of factors, such as the adequacy of contributions and sustainability issues. We have instituted a number of reforms, but there is room for holistic reforms."

Zimbabwe's pension sector faces multiple challenges including the unresolved loss of value of pension savings, poor governance, inadequate skills, weak risk management, and mounting contribution arrears as some employers fail to remit funds on time.

Official figures reveal that pension contribution arrears as of December 2024 stood at a staggering US$268 million, up sharply from US$6.8 million in previous years.

Local pension funds have also struggled with ineffective investment strategies, resulting in poor returns and further erosion of pension savings' value.

Addressing the same conference, World Bank Lead Financial Specialist Fiona Stewart stressed that strong governance is critical for pension funds to diversify investments effectively.

Zimbabwe's pension industry currently comprises 967 registered occupational pension funds, of which 489 are active - accounting for 50.6 percent of the total. The remaining 478 funds are inactive, with 372 awaiting dissolution pending resolution of pre-2009 compensation claims.

This year's ZAPF conference is held under the theme, "50 years: Shaping tomorrow, today – Building on the past, embracing the future," highlighting the need for transformative changes in the pension sector.

The conference calls attention to the urgent need for comprehensive reforms to protect pensioners' interests and secure sustainable retirement incomes for Zimbabweans.
- the herald

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