Workers urged to register for pensions

By Daniel Mhonda

The Insurance and Pension Commission (IPEC) has encouraged workers to register for pension benefits with various insurance and assurance companies throughout the country.

IPEC public relations manager, Mr Lloyd Gumbo, said nearly 80 percent of people who are formally employed were not registered for social security to provide income after retirement.

He was speaking during an awareness campaign held last Saturday at Chancellor Primary School in Mutare.

“There is quite a huge number of people who are not registered to benefit through pension after retirement. About 20 percent of employed workers are registered to benefit from pensions.

This is quite worrisome because a lot of people are entering old age in poverty since they would not have income after retirement,” he said.

Mr Gumbo said they had been moving around the country encouraging people to consider joining insurance and assurance policies and educating them on the importance of retirement benefits.

“We have been in other provinces to sensitise and remind members of the public on their rights and importance of insurance and pensions in case of risk hence the need to increase the number of those registered,” said Mr Gumbo.

IPEC said less than 20 percent of employees in formal employment were saving for retirement.

National Social Security Authority (NSSA) marketing and communications executive, Mr Tendai Mutsekwa said they were working on a framework to provide services for every employee including those who were informally employed.

Mr Mutsekwa said the move was in tandem with a Government initiative to reduce old age poverty.

“NSSA was instructed by the Government to come up with ways of providing services to everyone, even those that are not formally employed. We encourage everyone in the country to register for pension with private assurance companies,” he said. The Herald.