Africa-Press – Namibia. Retirement is something many people still believe they will “figure out when the time comes”.
But this mindset is becoming increasingly dangerous in a world where life expectancy is rising, the economy is unpredictable, and responsibility for retirement income continues to shift from institutions to individuals.
As Namibians, we can no longer afford to treat retirement planning as an afterthought. We must place financial literacy at the centre of how we prepare for the future.
The conversation about retirement needs to evolve urgently.
NEW REALITY
For previous generations, retirement came with a predictable income. Today, many retirees rely on market-linked investments that require ongoing decision-making throughout retirement.
Modern retirees must choose their investment components, determine a sustainable income level and review their strategy regularly.
This flexibility is empowering, but it also means the risk of running out of money sits squarely with the individual, especially when decisions are made without the right information.
The truth is simple: You cannot delegate your retirement to chance.
OUTLIVING YOUR MONEY
Namibians are living longer, but our savings are not necessarily keeping pace. The risk of outliving one’s retirement capital is no longer hypothetical, it is already a reality for many retirees.
A key driver is the income withdrawal rate. Withdrawing too much, too soon can shorten the lifespan of one’s investments dramatically. Yet many retirees choose income levels based only on current lifestyle needs, without considering the long-term consequences.
Financial literacy helps individuals understand that sustainable withdrawals, coupled with appropriate investment growth, are essential to ensuring their money lasts as long as they do.
Namibia’s retirement system offers considerable flexibility. Retirees can adjust income annually, switch investment components and nominate beneficiaries. These features support personalisation, but they also increase responsibility.
Flexibility is only beneficial when people understand how investment risk affects income sustainability, how their strategy should adapt over time, and why annual reviews are essential.
Without proper guidance, flexibility can lead to unsustainable withdrawals and irreversible financial strain.
Retirement should not be treated as a once-off event. It is a dynamic life stage requiring continuous, informed decision-making.
INFLATION: THE QUIET ERODER
Every Namibian has felt the rising cost of living. What is less obvious is how severely inflation erodes retirement income over time. A comfortable income today may fall short in a decade, even if spending habits remain unchanged.
To defend against this, retirees need to understand how inflation impacts different investment strategies. A purely conservative approach may feel safe, but it may fail to keep pace with rising prices. Without this understanding, people risk becoming financially vulnerable at a stage of life when financial stability matters most.
Financial advisers and brokers play a crucial role, but advice is most effective when individuals have a basic level of financial understanding. Retirement planning works best as a partnership, not a handover.
A financially literate society is one in which people plan earlier and more consistently, expectations are aligned with reality, decisions are grounded in understanding, and retirees maintain dignity and independence.
Namibia’s young working population today will become tomorrow’s retirees. If we fail to build widespread financial literacy now, we risk a future where many older citizens face avoidable hardship.
SHIFT NATIONAL MINDSET
Retirement planning should not only feature at human resource inductions or just before leaving employment. It must be a sustained, national conversation taking place across homes, workplaces, churches, community structures and media platforms.
We must normalise conversations about how much we should save, how retirement income actually works, what sustainable withdrawals look like, and how investment decisions impact long-term security.
Financial literacy is not a privilege; it is a necessity.
CALL TO ACTION
Namibians deserve to retire with confidence, dignity and choice. But that will only happen if we confront the realities of modern retirement and equip ourselves with the knowledge to navigate them.
Responsibility rests with all of us individuals, institutions, policymakers and industry leaders.
Retirement is not about the final pay cheque, it is about safeguarding the decades that follow.
The time to take this conversation seriously is now.
Our future selves are depending on it.
– Luandro Steyn is a broker consultant for Momentum.
In an age of information overload, Sunrise is The Namibian’s morning briefing, delivered at 6h00 from Monday to Friday. It offers a curated rundown of the most important stories from the past 24 hours – occasionally with a light, witty touch.
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