13 Nov 2025

Any consideration of allowing partial access to pension funds during active service needs to balance the need for short-term financial relief with the long-term goal of ensuring adequate retirement income, says Minister of Finance, Mr Ndaba Gaolathe. 

Mr Gaolathe was responding to a question from the Member of Parliament for Molepolole North, Mr Arafat Khan. Mr Gaolathe said the current framework was primarily designed to promote long-term savings and financial security after retirement. 

However, he said the ministry had noted developments in neighbouring countries, including the introduction of the ‘two pot’ retirement system in South Africa. 

He said government had not implemented a similar model, however a consultancy on the Botswana Pension System was undertaken through the Non-Bank Financial Institutions Regulatory Authority (NBFIRA) in 2023; which assessed the effectiveness and adequacy of the Botswana pension system, to inform government’s response to public calls for withdrawal flexibility especially from active pension members. 

Mr Gaolathe said the study confirmed that the existing regulatory framework was effective in regulating the pensions sector.  While partial withdrawals could provide relief in times of financial hardships, Mr Gaolathe said they might also reduce retirement income if not carefully managed.

He said the ministry acknowledged that some public officers experienced financial distress during their service years, and that a well-designed and regulated system that allowed limited withdrawals could offer relief while maintaining the integrity of retirement savings.

However, such reforms must be informed by robust actuarial assessments, sound policy design and broad stakeholder consultations to mitigate potential fiscal or social risks. 

Furthermore, he said government had observed declining life expectancy; but said the core objective of pension schemes was to ensure post-retirement income security and dignity. 

He also added that with early retirement incentives, the Directorate of Public Service Management would continuously explore various human resource strategies to rejuvenate the public workforce as a measure to address youth unemployment. 

Government, Mr Gaolathe said continuously reviewed policies governing pension administration to ensure that they remained responsive to the evolving socio-economic environment. 

He said the ministry remained committed to ensuring that Botswana’s pension system was sustainable, equitable and responsive to both the needs of public officers and the broader macroeconomic realities. 

He said ongoing consultations and studies would inform any future policy proposals, and that any proposal in this regard would be developed in consultation with relevant ministries, unions and pension administrators to ensure fiscal sustainability and equity. 

Mr Khan had asked the minister if they had ever considered allowing public officers to access a portion of their pension fund while still in active service. 

He said the reforms would allow fund members to make partial withdrawals from their retirement savings before retirement, while preserving a portion strictly for post-retirement use. 

He said the reform could enable public officers to continue saving for the long-term while offering flexibility to address financial distress during their service years. ENDS