By Emda Fourie, Head of Employee Benefits, Momentum Corporate
Financial security is no longer just about retirement—it’s about resilience throughout life. Rising living costs, evolving family structures, and longer lifespans mean that financial planning must address both the present and the future. What happens during a person’s working years is just as important as what happens after retirement.
Employee benefits are central to this conversation. Too often underestimated or misunderstood, they provide practical protection for working Namibians and their families. When well-designed and clearly communicated, these benefits help individuals navigate both expected and unexpected events without falling into financial distress.
The Power of Collective Structures
Globally, pooled retirement arrangements improve access to financial security. In Namibia, umbrella funds allow multiple employers to share a single retirement and risk benefit framework. This simplifies administration, reduces costs, and gives employees a consistent savings mechanism.
For many households, monthly retirement contributions are the only disciplined long-term savings they have. Combined with professional investment management, these contributions create the foundation for financial independence later in life. For families who support multiple generations, this independence has a ripple effect—easing financial pressure on children and relatives.
How Much Is Enough?
A widely accepted benchmark is to retire on a pension equal to 75% of pre-retirement income. Achieving this requires:
- Contributing 15%–20% of income consistently over 30–40 years
- Earning investment returns of at least CPI + 5%
- Accumulating capital equal to 16–18 times your final annual salary
These figures highlight why starting early and maintaining contributions are critical.
A Safety Net for Life’s Harder Moments
Retirement savings are only part of the picture. Risk benefits—such as death, disability, and funeral cover—provide essential protection when life takes an unexpected turn.
- Death benefits help families cope financially after losing a breadwinner.
- Disability benefits ensure income continues when illness or injury prevents work.
- Funeral benefits cover immediate costs, reducing stress during a time of grief.
Without these benefits, many households would rely on high-interest debt or extended family support, creating additional strain during already difficult circumstances.
The Human Side of Funeral Benefits
Among risk benefits, funeral cover is often the most valued. Funerals in Namibia carry emotional weight and significant costs. A benefit that pays quickly is more than financial help—it provides dignity and relief, allowing families to focus on mourning rather than money.
Claims Tell the Real Story
Industry data shows millions paid annually in death and disability claims across employee benefit schemes in Namibia. Behind every claim is a personal story: a spouse rebuilding life after loss, a worker adjusting to disability, a family navigating grief. These stories remind us that employee benefits are not abstract deductions on a payslip; they are lifelines when families need them most.
A National Opportunity
Namibia has an opportunity to strengthen its financial well-being by prioritising employee benefits. They reduce pressure on families, support workers through unexpected events, and encourage long-term savings. A financially secure employee is also a more productive employee—meaning businesses benefit too.
Employers should implement robust benefit programs and ensure employees understand them. In doing so, we build a more financially resilient society.
A Call for Greater Awareness
Employee benefits are not a substitute for personal financial planning, but they are an essential part of it. They offer stability during uncertainty and support long-term independence. The more people understand these benefits, the better equipped they are to make informed decisions—even under the harshest circumstances.
As financial pressures evolve, raising awareness is not just helpful—it is essential for the well-being of individuals, families, and the broader Namibian community.
