THE plight of Zimbabwean pensioners has reached boiling point.
Despite contributing significantly to their pension funds, many are struggling to make ends meet, with some receiving as little as US$1 to US$2 per month.
This is a shocking indictment of the system and a clear call to action for the government.
A group pensioners association of one leading financial institution blew the whistle on the fund this week, revealing that its members were living in abject poverty despite their contributions.
The association’s letter to the fund’s chairman highlighted the absurdity of the situation, where pensioners who have worked for the bank for almost their entire lives are receiving pay outs that are equivalent to less than US$5.
Ironically, most pension funds have invested heavily in the property sector, presumably to grow pensioners’ ultimate earnings, making it unconscionable they are expected to survive on less than US$5 per month. This is particularly heart breaking when considering that some pensioners contributed over US$500 monthly to the group’s pension fund, only to receive payouts of between US$1 and US$5.
This issue is not perculiar with one pension fund. Many pension funds in Zimbabwe are doing the same, with authorities seemingly turning a blind eye to the heartless exploitation.
According to the National Social Security Authority, nearly half of all registered companies in Zimbabwe have failed to remit workers’ pension contributions to the state-controlled pension fund.
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This has resulted in workers and their families being deprived of their entitlements in the event of retirement, death, or other developments. Instead of remitting these contributions, companies are using them to fund their own cash flows.
This raises serious questions about the management of pension funds in Zimbabwe and the government's role in regulating the industry. More needs to be done to normalise the situation.
We would like to urge the government to take immediate action to address the pension crisis before it gets out of hand. This includes increasing transparency and accountability, improving regulation, and providing support to pensioners.
The government must ensure that pension funds are transparent and accountable in their dealings. This includes regular audits and disclosure of financial information.
It must also strengthen regulation of the pension industry to prevent mismanagement and ensure that pensioners receive fair pay outs. The authorities should provide support to pensioners who are struggling to make ends meet. This includes increasing pay outs and providing access to basic necessities such as healthcare and food.
The pension crisis in Zimbabwe is a ticking time bomb that requires immediate attention. The government must act now to address the concerns of pensioners and ensure that they receive the support they deserve.
It is grossly unfair for individuals to make significant contributions to a pension fund, expecting a decent pay out in retirement, only to receive a paltry sum.
