The National Social Security Authority (NSSA) has announced plans to increase monthly pension payouts by 66%, raising the amount from the current US$60 to US$100.
The move is expected to bring relief to thousands of pensioners struggling with the rising cost of living.
In 2023, NSSA had increased minimum pension payouts from US$20 to US$60 for retirees and US$70 for injured workers, along with introducing partial US dollar disbursements to cushion pensioners against inflation and the depreciation of the local currency.
Commitment to Pensioners’ Welfare
Speaking to The Sunday Mail, NSSA board chairperson Dr. Emmanuel Fundira reaffirmed the authority’s dedication to improving pensioners’ livelihoods. He linked the planned increase to NSSA’s broader financial goals, aiming for exponential growth in its investment portfolio.
“We are looking at increasing our balance sheet to levels close to US$2 billion by the year 2030. If we achieve that growth, pension payouts can be indexed well above inflation levels, ensuring meaningful returns for pensioners,” Dr. Fundira said.
Timeline for the Adjustment
While the exact date for the increment has not been confirmed, Dr. Fundira hinted that the adjustment could take effect by the end of 2025. “By 2025, pension payouts should reach between US$80 and US$100, depending on the performance of our investment portfolio,” he added.
Regional Comparisons
The planned increase will bring Zimbabwe closer to regional standards. In South Africa, the maximum monthly old-age pension is approximately R2,180 (around US$116), while Botswana offers BWP530 (about US$38) per month.
Investment Portfolio Growth
NSSA’s investment portfolio has shown remarkable growth, expanding by 39% in 2023 and 35% in 2024, reaching a total value of US$800 million. This financial stability is expected to underpin the proposed pension adjustments and improve the quality of life for pensioners.
The announcement has been met with optimism among pensioners, who are hopeful for a more sustainable income amid Zimbabwe’s economic challenges.
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