Malawi govt to launch universal pension scheme: 500 000 to benefit

About half a million Malawian pensioners are expected to benefit from a government scheme whose purpose is—to a greater extent—aid their day-to-day lives for the better hotly due to their diminished revenues.

MP Chikalimba (left): most people struggle greatly once they retir

Zomba Chingale MP John Chikalimba of Peoples Party (PP), who is spearheading the move in parliament, said once instituted—most probably this year—men and women, most living at over sixty years, will substantially benefit.

Chikalimba said the provision of the universal pension scheme, “will certainly improve the welfare of many.”

Said Chikalimba: “The thing is that most people struggle greatly once they retire, and we are pushing hard to achieve this. Once this is established, we project to have every pensioner get K20 000 a month which we believe will be better than nothing at all.”

According to Chikalimba, the scheme would be needing K16 billion every year for the 500 000 beneficiaries.

Mzuzu-based social commentator, Emily Mkamanga, hailed the project but said government should walk the talk on its sustainability.

“The programme is without debate a great one. But the problem is that they are mostly not sustainable. Let us work on sustainability on this one,” said Mkamanga.

Nyasa Times understands that Malawi has over 900 000 pensioners of which only about 300 000 benefit from various pension schemes.

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chigezero pure
chigezero pure
11 months ago

While i would really hail government for such scheme but i hope this is not a ploy to try and silence the general public when the MPs will implement their own pension scheme……which i do not think they deserve at all.

Benjamin Kabinda Sakala
Benjamin Kabinda Sakala
11 months ago

If government not allowed that I can say thank you,because most Malawians they are working in private companies and self employment,so u cannot think about workers only that’s stupid Chikalimba,too much corruption in Malawi,same people they money that thy can do something for there family,remember those who vote for u pliz,next u will say u want wi-fi in August house,stop feeding ur stomach,have financial adviser before u retire,Workers union also need in Malawi,both government and private,u are there for all not only civil servant,thank u

Mtete
Mtete
11 months ago

I think the Statutory Bodies should emulate this noble scheme, more so because the retirees in these organisations contributed to national development. After all these bodies are government owned.

Mwananyanian
Mwananyanian
11 months ago

The current Ntukula pa Khomo has gone some way in upping the quality of life of the recipients and their dependents, like orphans. And, it should be pointed out that the recipients were in dire economic states in the first place. Perhaps it would be better to expand Ntukula, rather than start a new expensive program. And, when retirees live in poverty isn’t that their own responsibility and of their former employers’? Why should tax payers pick up the slack because the employer didn’t pay enough, or the employee didn’t save enough? People have to take responsibility for their actions… Read more »

Angoni apaphata
Angoni apaphata
11 months ago

Tey deliberately start things in phases so that they can use them as leverage. If it is a law pass it for every pensioneer when you have the funds. Zimenezi ndiye increasing corruption because to be a beneficiary people will now start looking for kickbacks. Kodi ku Malawi anthu anzeru anatha?

Mulopwana
11 months ago

Good project but do we have the funds fir sustainability. I know we have fertilizer subsdie, malata and cadet subssy. Lets abolish some od these plse

FootSoldier
FootSoldier
11 months ago

MK20,000 x 12 x 500,000 far exceeds MK16B/year! Actually it is MK120B/year! If they can’t get the arithmetic right how can they properly manage the scheme?????

FootSoldier
FootSoldier
11 months ago

These are schemes to defraud tax-payers! What is the basis for paying old-age pension to people who have never been on govt payroll. A ‘purposively’ interpreted Financial Management Act would not provide for this!

Ngozo
Ngozo
11 months ago

2010 pension act was not well planned. It is such a punitive act frustrating those retiring. The beneficiaries of this pension act are Nico, Old Mutual and Vanguard companies because the annuities offered are peanuts. I would rather be offered 100% of my pension and purchase a house which will be giving better rental fees adjusting upwards yearly.

Ronnie Mvula
Ronnie Mvula
11 months ago
Reply to  Ngozo

Great idea. Why can’t we lobby for this with our parliamentarians.

Extra Point
Extra Point
11 months ago

Hon Chikalimba, this is good news for all senior citizens. I have some technical reservations. Are you sure that 500,000 people getting monthly pension of MK20,000 every year will cost the government MK16 billion? It is far much higher than this. Payment alone excluding logistics will cost taxes MK120 billion

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