Reflecting on 2025 Through the Lens of Namibia’s Pension Sector

As we look back on 2025, it becomes clear that the year was anything but ordinary for Namibia’s pension landscape. It was a period of change, bold proposals and renewed scrutiny, one that tested the sector’s resilience while opening doors to new possibilities. From government benefit reforms to regulatory shifts and industry-wide reflection, 2025 reminded us that the pension environment is dynamic and continually adapting. In this piece, we revisit the key moments that shaped the year and nudged the industry toward its next chapter.

January – March: Governance Reform and Public-Sector Changes

The year commenced with what appeared to be a potentially impactful proposal for government employees. Under a draft change to retirement-benefit rules, retirees under the Government Institutions Pension Fund (GIPF) and related public-service arrangements are to become eligible to withdraw up to N$ 375,000 as a lump sum at retirement, a substantial increase from previous thresholds. The proposal was explicitly framed to apply to government employees, not to private-sector pension or provident funds, which continue to maintain their own benefit structures and governance frameworks. If implemented, the increase promises greater flexibility for civil servants relying heavily on pensions at retirement. The proposal also triggered concern among observers as some warned that while a large cash-out might offer immediate relief, it could expose retirees to the risk of a “broke future” if funds are spent prematurely rather than preserved for long-term retirement needs.

March saw further refinement within the public sector when the Members of Parliament and Other Office Bearers Pension Fund implemented Rule Amendment No. 5, effective 20 March 2025. The amendment introduced clearer definitions of pensionable service and highest pensionable salary, new reserve accounts to strengthen risk and operational management, and mandatory quarterly trustee meetings to enhance governance. Importantly, a minimum pension guarantee was introduced for qualifying members retiring after the amendment date. These reforms underscored ongoing efforts to modernise public-sector pension administration while distinguishing these arrangements from private-sector funds.

April – June: Benefit Adjustments and a Decade Reflection on Regulation 13

In April, attention turned once again to government retirees when GIPF announced a 4% increase in monthly pension benefits, effective 1 April 2025. In a challenging cost of living environment, the increase offered meaningful relief to pensioners relying on the GIPF annuity for sustained income. As with earlier adjustments, this update applied exclusively to GIPF members and did not automatically impact private funds.

The second quarter also carried broader implications for the entire pension industry as 2025 marked the end of the initial 10-year cycle of Regulation 13(5) of the Pension Funds Regulations. This regulation applies to all registered pension funds, both private and public and requires funds to invest a defined portion of assets in unlisted investments through Special Purpose Vehicles (SPVs). As these investments matured, industry reflection revealed a mix of outcomes. Some SPVs generated positive developmental impact and competitive returns, while others presented challenges relating to illiquidity, underperformance, or long-term risk exposure. Many funds exercised a permissible one-year extension to facilitate exits or restructuring. The reflection on Regulation 13 in 2025 reaffirmed the careful balance required between national developmental objectives and fiduciary obligations to preserve and grow member benefits.

July – September: Industry Dialogue and Retirement Innovation

One of the central highlights of the year was the 17th RFIN Annual Conference, held from 20–21 August 2025 in Windhoek under the theme “Leading in a Changing World.” The conference brought together trustees, administrators, regulators, actuaries and other professionals to discuss the evolving landscape of leadership, governance and market conduct in Namibia’s retirement sector. Key presentations examined macroeconomic trends, global shifts affecting pension funds, and strategies for strengthening the capacity and integrity of governance structures. The annual gathering underscored the industry’s shared commitment to transparency, strategic foresight and responsible stewardship.

As part of its final Quarter 4 Member Engagement for 2025, RFIN built on the momentum of industry engagement and leadership dialogue by turning its focus toward the future. Stakeholders gathered under the inspiring theme “Leading in a Changing World: The Superpower of the Future” with Keith Coats, exploring the art of learning, unlearning and relearning in an environment of rapid change. The session delivered dynamic discussion, meaningful industry networking and a forward-looking exchange, as the sector collectively reflected on emerging leadership demands and cast its eyes toward 2026.

The event took place on Thursday, 20 November 2025, and was hosted at the Hilton Windhoek, reinforcing the industry’s commitment to continuous development and adaptive leadership beyond formal conferences.

The Size and Influence of Namibia’s Pension Industry

As the year progressed, updated financial data reinforced the sheer size and influence of pension funds within Namibia’s financial system. Industry reporting showed that Namibia’s investment-management sector held approximately N$284 billion in assets under management as at 31 December 2024, with pension funds accounting for about N$119.6 billion, roughly 42.1% of this total. This confirms once again that pension funds remain the single largest pool of institutional capital in Namibia. Their investment decisions influence financial-market liquidity, credit flows, infrastructure opportunities and broader macroeconomic stability, reaffirming their central role in national development debates.

October – November: Housing Opportunity, Regulatory Reawakening and Institutional Governance

In October 2025, a new pension-backed home-loan scheme was announced for civil servants, set to take effect in January 2026. The arrangement allows GIPF members to borrow up to one-third of their pension savings, at an interest rate fixed at the Bank of Namibia repo rate plus 2.5%. Although targeted at government employees, the concept is not new to the industry, many private-sector pension and provident funds already offer similar housing-loan facilities through their rules. This new GIPF model, however, introduces a clear, gazetted interest-rate formula, which may influence how private funds structure their own offerings. Funds that do not yet provide pension-backed home loans may be encouraged to adopt similar benefits, and private-sector members may increasingly compare rates and opt for housing loans where pricing is more transparent and competitive. The development strengthens the link between retirement savings and long-term socioeconomic advancement through homeownership.

During the same period, the regulatory environment shifted once more as the Financial Institutions and Markets Act (FIMA) returned to the forefront of national dialogue. Originally enacted in 2021, FIMA had been placed on hold in 2022 following significant public concern particularly regarding compulsory preservation requirements. In late 2025, NAMFISA issued a public notice signalling renewed progress toward implementation. While no formal commencement date has yet been issued, the regulator confirmed that revised standards are being prepared, and the sector should begin readying itself for a modernised compliance framework. This reawakening of FIMA marks the impending end of the Pension Funds Act of 1956 and the beginning of a more rigorous governance and market-conduct regime.

On 25 November 2025, the Retirement Funds Institute of Namibia held its Annual General Meeting. The AGM addressed RFIN’s strategic direction, funding model, governance committee reports, constitutional amendments and board elections. The deliberations demonstrated the institution’s commitment to strengthening industry leadership, supporting trustee upskilling, promoting governance excellence and advancing collaboration across the pension ecosystem.

The National Pension Scheme Conversation

Throughout the year, discussions intermittently resurfaced around the concept of a national pension scheme, aimed at widening retirement coverage to workers outside the formal sector. Although no concrete legislative framework or implementation roadmap emerged in 2025, the idea continued to circulate in policy circles. Such a reform would represent a major structural shift with the potential to significantly expand coverage, but it could also disrupt or destabilise the current legislative and institutional pension architecture, which is built around independently regulated pension and provident funds under NAMFISA. How such a scheme might integrate with, complement, or replace existing arrangements remains unclear. For now, the national pension concept remains exploratory, but it is a development worth monitoring closely in the years ahead given its potential to reshape Namibia’s retirement landscape.

A Steady Path Forward

As 2025 draws to a close, the year will be remembered as a time of adaptation, learning and preparation. From enhanced government benefits to modernising regulation and ongoing discussions on national coverage, the pension landscape continues to evolve in ways that strengthen its role in securing Namibia’s financial future. RFIN remains committed to promoting industry excellence, strengthening governance, enhancing trustee education and supporting a resilient, transparent and member-centred retirement system.

As the festive season arrives, we extend warm wishes to all our members, partners and stakeholders. May the season bring rest and renewal, and may the new year continue the progress we have made together.

Until next year.

By Vincent Shimutwikeni