01 Mar 2017

Managing director of Econsult Botswana, Mr Keith Jefferies says early retirement is one of the killers of adequate pensions.

Giving a keynote address at the Botswana Pensions Society Annual Conference in Gaborone on February 27, Mr Jefferies said early retirement reduced both the employee and employer contribution period and the cumulative investment returns.

“Early retirement also reduces pension levels because annuities have to be paid for long, life expectancy,” he said.

In order to deal with adequate pensions, he said early retirement age in public service should be raised as well as encourage more investment choices for pension fund members of low fee products.

Further, he said competition in the annuity market should be encouraged as well as allow retirees to purchase foreign annuities.

Thus, he encouraged government to issue more long term bonds.

“Consider how best to fill the gap between universal state pension and private occupational pension in the pension pillars, and also raising the state pension as it is very low at the moment,” he said. ENDS