Namibia’s retirement fund industry paid out N$3.5 billion in benefits in the fourth quarter of 2024, reflecting a 12.1% increase from the previous quarter and a 17.2% year-on-year rise, official data shows.
According to the Namibia Financial Institutions Supervisory Authority (NAMFISA), the surge was driven by higher withdrawals due to retirement, early exits, disability, and death.
“During the quarter under review, the industry reported higher withdrawals due to retirement, early exits, disability, and death compared to the previous quarter,” the authority stated in its latest Quarterly Statistical Report.
For the eleventh time in thirteen quarters, benefit payments exceeded contributions. Contributions received stood at N$2.8 billion, marking a 4.9% increase from the previous quarter and an 8.6% rise year-on-year.
“The quarterly increase in contributions coincided with increases in the number of active members during the quarter under review,” NAMFISA noted.
The sector’s total assets grew to N$262.8 billion, up 2.0% from the previous quarter and 10.8% from the same period in 2023. A total of 76 active entities were registered during the period, with 412,593 active members.
Liquidity indicators weakened during the quarter. The quick ratio fell to 81.2%, down from 86.8% in Q3 2024 and 87.6% in Q4 2023.
“Benefits paid increased while contributions received decreased during the quarter under review,” the report stated.
Despite this, NAMFISA said the ratio remained within prudential limits, noting that the quick ratio has stayed within the prudential range of between 69.6% and 208.7% for thirteen consecutive quarters.
The current ratio also declined, from 82.3% to 67.5% quarter-on-quarter, although it remained above the 61.0% recorded a year earlier.
The industry’s funding level improved slightly to 101.3% in Q4, up from 101.2% in the previous quarter.
“The industry was able to maintain a funding level above 100% due to overall positive performances in financial markets, despite market fluctuations experienced over the past thirteen quarters,” NAMFISA said.
Investment performance supported asset growth. Total investments, including insurance policies, rose to N$262.8 billion. Direct investments by retirement funds increased to N$230 billion, a 1.9% quarterly and 10.2% annual increase.
“The increase in investments directly held by retirement funds followed the positive performance of bonds,” NAMFISA stated, despite declines in the NSX and JSE indices.
Investments through insurance policies amounted to N$31.2 billion, rising 2.0% from the previous quarter and 10.8% year-on-year.
