Namibia’s retirement fund industry continued to grow during the first three months of the year, with total assets reaching N$301.9 billion.
This is despite retirement funds paying out more benefits than they received in contributions.
According to the latest quarterly report by the Namibia Financial Institutions Supervisory Authority (Namfisa), total retirement fund investments increased by 0.1% compared to the previous quarter, and by 14.9% compared to the same period last year.
Namfisa says the growth was largely supported by the favourable performance of various investment assets.
“The value of the retirement fund assets increased on a quarterly and annual basis during the first quarter of 2026. The increase observed in investments was due to the favourable performance of various investment assets,” the authority says.
THE BIGGEST FUNDS
The majority of retirement fund assets continue to be managed by the Government Institutions Pension Fund (GIPF), which accounted for 69.4% of the industry’s total assets at the end of March.
It was followed by the Benchmark Retirement Fund, which held 4.3% of total assets, and the Retirement Fund for Local Authorities and Utilities Services in Namibia with 3.1%.
Together, the three funds controlled 76.9% of the industry’s investments.
KEEPING CASH AT HOME
The report shows retirement funds continued to meet Namibia’s investment regulations, despite a slight decline in local investments.
Domestic assets accounted for 49.3% of total investments, down from 50.3% in the previous quarter but still above the 45% minimum required by law.
Retirement funds invested 31.2% of their assets in international markets, 17.6% within the Common Monetary Area (CMA) and 1.9% elsewhere in Africa.
Namfisa says the industry remained fully compliant with all investment limits prescribed under Regulation 13, including restrictions on investments in property, shares and dual-listed companies.
The financial health of retirement funds also remained stable.
The industry’s funding level stood at 101% at the end of March, meaning retirement funds had sufficient assets to cover their obligations to members.
“A funding level above 100% indicates that a retirement fund holds adequate assets to meet its liabilities to the members,” Namfisa says.
While investment values continued to rise, retirement funds paid out more money during the quarter.
Total benefits and transfers increased by 9.3% from the previous quarter and 30.7% compared to a year earlier.
The largest increase came from pension payments, which rose to N$2.6 billion, including monthly pensions and lump-sum payments.
Withdrawals linked to resignations and dismissals also went up increasing by 46.7% year on year to N$1.4 billion.
Retrenchment payments amounted to N$193.3 million. This a 57.8% increase from the previous quarter, while disability, death and funeral benefits totalled N$156.6 million.
Namfisa says contributions fell short of benefit payments by N$430.8 million.
However, the shortfall was covered by N$2 billion in net investment income generated during the quarter.
