The Government Institutions Pension Fund (GIPF) tightened its grip on Namibia’s retirement fund industry in the first quarter of 2026, controlling N$209.5 billion of the sector’s N$301.9 billion in investment assets as strong market performance boosted the value of pension savings.
Figures released by the Namibia Financial Institutions Supervisory Authority (NAMFISA) show GIPF accounted for 69.4% of total retirement fund assets at the end of March, reinforcing its position as the country’s dominant pension fund by a wide margin.
“The Government Institutions Pension Fund continued to dominate the industry at the end of March 2026, holding 69.4% of the total assets. The Benchmark Retirement Fund and the Retirement Fund for Local Authorities and Utilities Services in Namibia followed with 4.3% and 3.1%, respectively, of the total investments. Together, these three funds held 76.9% of the industry’s total investments,” NAMFISA said.
Overall retirement fund investments, including insurance policies, rose 0.1% quarter-on-quarter and 14.9% year-on-year to N$301.9 billion as at 31 March 2026.
“The value of retirement fund assets increased on both a quarterly and annual basis during the first quarter of 2026. The increase in investments was due to the favourable performance of various investment assets,” the regulator said.
Retirement funds held N$265.3 billion directly in investments, while a further N$36.6 billion was invested through insurance policies.
Despite continued growth in assets, retirement funds paid out more in benefits than they collected in contributions during the quarter.
Industry contributions increased 6.8% quarter-on-quarter and 13.9% year-on-year, supported by growth in active membership and salaries. However, benefits and transfers increased even faster, rising 9.3% over the quarter and 30.7% compared with the same period last year.
As a result, the industry recorded a N$430.8 million shortfall between contributions received and benefits paid.
NAMFISA said the gap was more than offset by strong investment returns.
“The gap of N$430.8 million between contributions received and benefits paid was adequately covered by the net investment income of N$2.0 billion reported for the quarter ended 31 March 2026,” the authority said.
Retirement funds also remained well funded, with the industry’s funding level standing at 101.0%, indicating that assets continued to exceed liabilities.
“The funding level was 101.0% as at 31 March 2026. A funding level above 100.0% indicates that a retirement fund holds adequate assets to meet its liabilities to members,” NAMFISA said.
The regulator also reported that retirement funds continued to comply with domestic investment regulations, with 49.3% of assets invested locally, comfortably above the 45.0% minimum required under Regulation 13. Meanwhile, 31.2% of investments were held offshore, 17.6% within the Common Monetary Area (CMA), and 1.9% elsewhere in Africa.
