Workers’ Futures at Risk as Employers Fail to Remit Pension Contributions, Old Mutual Warns

November 11, 2025 Our reporter Be the first to comment

The retirement dreams of thousands of Malawian workers are quietly being eroded as some employers continue to withhold pension contributions instead of remitting them, Old Mutual Pension Services has warned.

Speaking during the inaugural 2025 Old Mutual Pension Trustees Conference in Mangochi on Friday, the company’s general manager, Tawonga Manda, said the rising trend of non-compliance is putting workers’ financial security in jeopardy — particularly when they retire or are faced with emergencies.

“The level of non-compliance is huge,” Manda said.
“We have employers who have registered for pension schemes but are simply not remitting contributions. The numbers are alarming.”

The impact of this practice is severe:

  • Workers nearing retirement often discover that the funds they believed were being saved for them do not exist.
  • Families lose a critical safety net in moments of illness, job loss, or death of a breadwinner.
  • The broader national pension system becomes strained, weakening its ability to deliver reliable returns.

For many employees, the pension contribution deducted from their salary is the only path to dignity after retirement. When employers withhold these funds, they are not just breaking the law — they are stealing from workers’ futures.

Reserve Bank of Malawi director of pension and insurance supervision Kaluso Chihana reminded employers that under the Pension Act 2023, remitting pension contributions is not optional — it is a legal obligation.

He also encouraged workers in the informal sector to explore available social protection schemes so that they, too, can secure long-term financial stability.

The conference, held under the theme “Shaping the future of pensions: Resilience, sustainability and innovation,” brought together 200 trustees, regulators and financial experts to chart solutions that strengthen compliance and restore confidence in pension systems.

The message was clear: A pension is not a privilege. It is earned. And it must be protected.

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