The Importance of Saving for Life After Retirement
As the world progresses with improvements in
technology and medicine, today an average person
is expected to live longer than they did before. On
the other hand, the number of years where that the same
person can work and earn an income is limited. In Namibia
the normal retirement age is 60 years of age, although it has
been seen that an average person can live for many more
years after retirement. Since you will no longer be earning
an income from formal employment during the retirement
period, it is very important to save enough money during
working life to support yourself after retirement.
What is fund
A fund can be either a pension, provident, or a retirementA Pension fund is like a savings account that an employer sets
up to give you money something when you retire. Belonging to
a pension fund gives a member certain benefits. These benefits
are in the Rules of the Fund and are different from fund to fund.
Members should make sure that they get a copy of the Rules of
the Fund to know what benefits they are entitled to and when
they can be claimed.
Types of Retirement Funds and Benefits
Note: You Can’t Access Your Pension Savings Anytime You Want
Pension savings (fund credit) can only be claimed under specific conditions, not simply because you need cash for personal reasons like buying a car. Even if your employer switches to a new pension fund and transfers your savings, you still cannot cash out at that point.
A pension fund is a long-term investment meant to support you during retirement, not a savings account you can withdraw from at any time. Therefore, it is not advisable to try to withdraw your pension early.