Editorial: Rising Tensions Over Pensions

IN simplistic terms it is fair to say that the N$300 a month currently paid to State pensioners is totally inadequate to live on, and all efforts of Government should be directed towards increasing this paltry amount.

Ways and means have to be found to do this, and in this respect, it would be gratifying to see more thoughtful contributions from both ruling party and opposition in Parliament on this burning national issue. The way things are right now is that the opposition, in this case DTA President Katuutire Kaura, simply calls for increases in the pension; while the ruling party, in the person of Marlene Mungunda, Gender Equality and Child Welfare Minister, in turn shoots such requests down.There is very little truly informed debate, and if one looks at similar discussions in other countries, one realises the whole issue is not as simple as the opposition and the ruling party in this country would like to make out.It would be positive to see both sides do some more homework on this vital issue.Kaura merely said that more money could be found by reducing the defence budget and the size of Cabinet.Mungunda, on the other hand, made statements that may well come back to haunt her.She claimed that pensioners were receiving what she termed ‘endless benefits’ which included a ‘package’ of free health care, affordable housing, subsidised water and electricity and death benefits.She should not be surprised if in future those same pensioners knock on her door to demand what she says they already receive! Obviously the question of looking after the elderly is a crucial question in any society, and many countries in the world face crises in this regard.There are different categories of pensioners, including those who are reliant on State pensions (which are currently set at N$300 for recipients of 60 years and older); and those who receive private (or occupational) pensions.The latter are generally higher, but that does not necessarily mean people on private pensions are well off.Only those people with abundant private means, investment and/or property can truly be said to have a comfortable old age.At least our State pension, meagre though it may be, is uniform on the gender basis, which is not the case in other countries, so women get as much (or in this case, as little) as men.People have to prepare for old age.Personal savings, where possible, are very important.It is so, as Kaura says, that the State could better manage its finances in order to top up State pensions for the elderly, but it is not as easy as that.In the UK, for example, generally known as a welfare state, a pensions crisis is looming.With a lower birth rate, and fewer people working compared to the number on retirement, taxpayers will have to foot the escalating pension bill.Raising the retirement age to 70 has even been proposed, against the background that people have better health care and therefore live longer, but this is bound to incur the wrath of the unions and is unlikely to go through.There is poverty in Namibia, and it would be interesting to find out to what extent our old-age pensioners make up the majority of our poor.There is no doubt, even in the absence of such statistics, that our elderly do not, as Ms Mungunda maintains, ‘have it easy’ and that they could and should get a better deal, but we need to find innovative ways and means to ensure this happens.Ultimately, we have to ask ourselves whether Namibia is a good place in which to grow old.If we can answer ‘yes’, then we are making progress in ensuring our elderly get a better deal.The way things are right now is that the opposition, in this case DTA President Katuutire Kaura, simply calls for increases in the pension; while the ruling party, in the person of Marlene Mungunda, Gender Equality and Child Welfare Minister, in turn shoots such requests down.There is very little truly informed debate, and if one looks at similar discussions in other countries, one realises the whole issue is not as simple as the opposition and the ruling party in this country would like to make out.It would be positive to see both sides do some more homework on this vital issue.Kaura merely said that more money could be found by reducing the defence budget and the size of Cabinet.Mungunda, on the other hand, made statements that may well come back to haunt her.She claimed that pensioners were receiving what she termed ‘endless benefits’ which included a ‘package’ of free health care, affordable housing, subsidised water and electricity and death benefits.She should not be surprised if in future those same pensioners knock on her door to demand what she says they already receive! Obviously the question of looking after the elderly is a crucial question in any society, and many countries in the world face crises in this regard.There are different categories of pensioners, including those who are reliant on State pensions (which are currently set at N$300 for recipients of 60 years and older); and those who receive private (or occupational) pensions.The latter are generally higher, but that does not necessarily mean people on private pensions are well off.Only those people with abundant private means, investment and/or property can truly be said to have a comfortable old age.At least our State pension, meagre though it may be, is uniform on the gender basis, which is not the case in other countries, so women get as much (or in this case, as little) as men.People have to prepare for old age.Personal savings, where possible, are very important.It is so, as Kaura says, that the State could better manage its finances in order to top up State pensions for the elderly, but it is not as easy as that.In the UK, for example, generally known as a welfare state, a pensions crisis is looming.With a lower birth rate, and fewer people working compared to the number on retirement, taxpayers will have to foot the escalating pension bill.Raising the retirement age to 70 has even been proposed, against the background that people have better health care and therefore live longer, but this is bound to incur the wrath of the unions and is unlikely to go through.There is poverty in Namibia, and it would be interesting to find out to what extent our old-age pensioners make up the majority of our poor.There is no doubt, even in the absence of such statistics, that our elderly do not, as Ms Mungunda maintains, ‘have it easy’ and that they could and should get a better deal, but we need to find innovative ways and means to ensure this happens.Ultimately, we have to ask ourselves whether Namibia is a good place in which to grow old.If we can answer ‘yes’, then we are making progress in ensuring our elderly get a better deal.