In the Republic of Namibia persons over the age of 65 made up 3.2 per cent of the total population in 2015. This group is expected to represent about 21 per cent of the population within the next three decades. In a proactive effort to ensure basic income security in the context of demographic ageing, the Government of the Republic of Namibia passed the National Pension Act in 1992 and launched a non-contributory universal National Pension Scheme (NPS) available to all Namibian citizens over the age of 60, regardless of income level. The NPS is designed to compliment contributory pension schemes in Namibia, such as the pension fund for the public service. The scheme is administered by the Ministry of Health and Social Services (MHSS) through a system of district pension officers responsible for investigating, submitting and registering applications to the NPS.
The NPS covers all older persons over the age of 60 who are citizens and do not reside outside Namibia for a period longer than six months. Eligible citizens are entitled to the universal monthly pension of NAD 450, or USD 45, regardless of their assets, income or other pensions from contributory schemes. In order to receive their entitlement, applicants must submit proof of age and citizenship. Claimants determine their preferred method to receive monthly payments, either through ATMs with PIN and fingerprint identification, bank transfer or collection from a designated post office. In 1993-1994, the NPS reached approximately 48per cent of the eligible population and, due to streamlined registration and receipt, national coverage reached 95per cent of the eligible population by 2001. In 2010 the old age pension scheme reached approximately 150,000 older persons.
Over the last 10 years the Government of the Republic of Namibia increased the State pension on several occasions. In 1999 the average pension was NAD 160 and by 2008 it had almost tripled to NAD 450, exceeding the national poverty line, which was estimated at NAD 398.5 per month in 2010. MHSS administration of the pension through a biometric smart card system has increased the scheme’s efficiency and accessibility while lowering its administrative costs. Investments in income security, such as the NPS are essential in building Namibia’s social protection floor to ensure that all in need have access to basic income security.
Further Reading:
International Monetary Fund (2006). Namibia: Selected Issues and Statistical Appendix. (IMF Country Report Number 06/153). Accessed from https://www.imf.org/external/pubs/ft/scr/2006/cr06153.pdf PAGE 25 on December 2016.
Eckard Schleberger (2002). Namibia’s Universal Pension Scheme: Trends and challenges. ESS Paper Number 6. International Labour Office, Geneva. Accessed from http://www.ilo.org/wcmsp5/groups/public/---ed_protect/---soc_sec/documents/publication/wcms_207689.pdf on December 2016.