Public Funds And Pensions

IT is a fact that many people in Namibia become very poor few years after retiring.

Work pensions are usually low and will never suffice to take them

along with their dependants and neither will old-age pensions

(OAP).

Political functionaries always demand the increase on OAP,

without suggesting alternatives, which may be beyond the

governments' affordability confines and which may also lead into

public debts which are bad for the future generations and

detrimental to our economic growth.

 

I think government in the long run could relinquish itself from

paying more OAP by considering the following: That it makes a

compulsory policy which allows all those employed (both in private

and public institutions and organizations) within certain salary

brackets and those considered able to take the retirement insurance

policies (known as retirement annuity) which will pay them a

lump-some at the age of retirement and continue to pay them monthly

income till their last day on earth.

 

Both retirement lump-some and monthly incomes offered by these

insurance companies are higher in comparison with what retired

people get from their employer once and for all.

 

In this regard government would simply pay for OAP for those who

never got employed or those who lost their jobs earlier than

retirement ages and relinquish itself paying the OAP for normal

retired people.

 

This does not only save public funds but also improve the future

welfare of our senior citizens to enjoy more or less the benefits

they had when they were working.

 

I think this would be an efficient allocative and redistributive

function a government could undertake to stimulate public saving

and improve socio-economic welfare.

 

Peter Muteyauli

Via e-mail

 

Political functionaries always demand the increase on OAP, without

suggesting alternatives, which may be beyond the governments'

affordability confines and which may also lead into public debts

which are bad for the future generations and detrimental to our

economic growth.I think government in the long run could relinquish

itself from paying more OAP by considering the following: That it

makes a compulsory policy which allows all those employed (both in

private and public institutions and organizations) within certain

salary brackets and those considered able to take the retirement

insurance policies (known as retirement annuity) which will pay

them a lump-some at the age of retirement and continue to pay them

monthly income till their last day on earth.Both retirement

lump-some and monthly incomes offered by these insurance companies

are higher in comparison with what retired people get from their

employer once and for all.In this regard government would simply

pay for OAP for those who never got employed or those who lost

their jobs earlier than retirement ages and relinquish itself

paying the OAP for normal retired people.This does not only save

public funds but also improve the future welfare of our senior

citizens to enjoy more or less the benefits they had when they were

working.I think this would be an efficient allocative and

redistributive function a government could undertake to stimulate

public saving and improve socio-economic welfare.Peter

Muteyauli

Via e-mail

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