Why You Should Seriously Consider a Pension
If someone offered you the chance to turn N$10 into N$100, would you be interested? Now imagine you only had to contribute N$8, because your employer added the remaining N$2 — all through a formal savings scheme. Sounds like a great deal, right?
That deal is your pension — one of the smartest financial decisions you can make for your future.
A pension is more than just a paycheck after retirement. Its purpose is simple and vital:
That deal is your pension — one of the smartest financial decisions you can make for your future.
A pension is more than just a paycheck after retirement. Its purpose is simple and vital:
It’s a long-term savings plan designed to give you financial independence when you stop working.
Saving for Retirement Is Easier Than You Think
Many people believe pensions are complicated or only for the wealthy. That’s not true. Pensions come with tax advantages and, in many cases, employer contributions. If your employer offers a pension fund, joining it is in your best interest.
If you don’t have access to a pension fund through your job, you can still take out a retirement annuity from an insurance company. The Government offers tax incentives to encourage people to save for retirement, reducing the future burden on state resources.
Important tip: When changing jobs, don’t cash out your pension! Rather, transfer your savings to your new employer’s fund or a preservation fund. This helps keep your retirement savings intact and growing.
If you don’t have access to a pension fund through your job, you can still take out a retirement annuity from an insurance company. The Government offers tax incentives to encourage people to save for retirement, reducing the future burden on state resources.
Important tip: When changing jobs, don’t cash out your pension! Rather, transfer your savings to your new employer’s fund or a preservation fund. This helps keep your retirement savings intact and growing.
Why It’s Critical to Start Early
It may feel like retirement is a lifetime away — especially when you’re young. But the sooner you start saving, the more your money can grow, thanks to the power of compounding.
Here’s an example using rough estimates:
Here’s an example using rough estimates:
| Age Started | N$10 Grows To |
|---|---|
|
25 |
N$320 |
|
39 |
N$80 |
This clearly shows how starting earlier can multiply your savings dramatically. Waiting too long means missing out on the growth your money could have achieved over time.
Your pension savings don’t just sit in a bank — they’re invested to grow over time. It’s important to know where your money is going. If you’re unsure, you can start with the default investment option offered by your pension fund.
As a general rule:
As a general rule:
Take interest in your pension performance. It’s your money, and understanding how it's growing helps you make better financial decisions.
If your employer is offering to match your contributions, don’t turn it down. That’s free money toward your future. Even if it means putting in a small portion yourself, the long-term benefit far outweighs the short-term cost.
Saving for retirement may not feel urgent today, but it’s one of the most important financial steps you’ll ever take. Whether you're starting with N$10 or N$1,000 — start now. The earlier you begin, the more secure and enjoyable your future will be.
Your future self will thank you.
If your employer is offering to match your contributions, don’t turn it down. That’s free money toward your future. Even if it means putting in a small portion yourself, the long-term benefit far outweighs the short-term cost.
Saving for retirement may not feel urgent today, but it’s one of the most important financial steps you’ll ever take. Whether you're starting with N$10 or N$1,000 — start now. The earlier you begin, the more secure and enjoyable your future will be.
Your future self will thank you.
