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-mailPolitical 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