Zambian President Hakainde Hichilema has signed into law a bill that allows workers to partially withdraw their pensions even before reaching retirement age. The National Pension Scheme Authority Bill 2023, signed on Monday, gives citizens the opportunity to reinvest their pension funds in various ventures and assets of their choice, according to a statement posted on President Hichilema’s Facebook page.
President Hichilema stated that the signing of the bill is in line with the government’s promise to the people to allow for partial withdrawals of pensions, and that it will result in the creation of more jobs, contributing to the country’s economic development agenda.
Stakeholders, including the Zambia Congress of Trade Unions, have welcomed the decision, stating that it will enable employees to invest in businesses and spur economic development. Joy Beene, the secretary general of the Zambia Congress of Trade Unions, stated that the move will also help reduce high poverty levels and address the issue of workers borrowing from banks, as reported by local media.
This new law marks a significant development in Zambia’s pension system, allowing workers to have more flexibility and control over their retirement savings. It is expected to have a positive impact on the country’s economy by encouraging investment and entrepreneurship.
