The Government Institutions Pension Fund (GIPF) will increase monthly pension benefits by 5% with effect from 1 April 2026, citing a strong financial position and the need to cushion retirees against rising living costs.
The increase applies to all pensioners, including qualifying spousal and child beneficiaries, while pensions in payment or deferment for less than a year as at 31 March 2025 will be adjusted on a pro-rata basis.
The decision was approved by the Board of Trustees on 26 March 2026 following an actuarial recommendation based on the fund’s sustainability and inflation of around 4%.
GIPF Chief Executive Officer and Principal Officer Martin Inkumbi said the fund is adequately positioned to meet its obligations.
“The fund is in a favourable financial position to adequately cover its liabilities,” he said.
The increase marginally exceeds inflation and aligns with the fund’s policy of targeting annual adjustments of between 75% and 100% of the National Consumer Price Index, subject to affordability.
GIPF currently pays out an average of N$337 million in pensions each month to 57,314 annuitants, amounting to more than N$4 billion annually.
The fund said the adjustment is intended to protect the purchasing power of pensioners amid rising costs of essentials such as food, fuel, housing and healthcare.
The decision follows a review of the fund’s financial position, including average returns over the past five years, asset performance and future liabilities. GIPF uses a three-year averaging method based on December year-end returns to manage volatility in investment performance.
Inkumbi said the fund remains focused on supporting retirees who no longer earn a regular income.
The fund added that maintaining pension adequacy reduces reliance on government and family support as cost-of-living pressures persist.
