Preparing for retirement must begin early

THE announcement by Minister of Labour and Social Security Brenda Tambatamba that Government is considering raising the National Pension Scheme Authority (NAPSA) partial withdrawal from 20 percent to as much as 30 percent or 40 percent is welcome.
We believe this is a forward looking move that deserves commendation. Allowing workers to access a larger portion of their pension savings while they are still active in the labour market is empowering them to prepare for retirement in a practical way.
For decades, retirement has been viewed as a distant event, something to be worried about only when one’s working years are nearly over. Yet the reality is that retirement security is built gradually, and often requires foresight, planning, and the ability to experiment with income generating ventures long before the final day of formal employment.
While workers are still energetic, and connected to networks, they are better positioned to start businesses, test ideas, and learn from mistakes. A 30 to 40 percent partial withdrawal gives them seed capital to invest in ventures of their choice. Whether it is a small farm, a transport business, or a trading enterprise, these investments can be nurtured over time. By the time retirement arrives, the business is not a fragile start up but a mature venture capable of sustaining livelihoods.
Entrepreneurship business is a process. Few ventures succeed on the first attempt. Mistakes are inevitable, but they are also valuable lessons. Accessing pension funds early provides the cushion to make those mistakes while still having the stability of a monthly salary. Workers can refine their models, adjust strategies and grow gradually.
When retirement eventually comes, they are not starting from scratch; they are simply scaling up what they have already built.
Naysayers once warned that partial withdrawals would collapse NAPSA. Numbers have shown otherwise.
As Ms Tambatamba noted, the fund has grown from K67 billion in 2021 to over K105 billion today, even after K11 billion was injected into the economy through the 20 percent partial withdrawals.
This should silence the critics. Empowering workers to access part of their savings does not undermine the system; it strengthens it by aligning pension policy with the realities of life. People want to plan for their future, but they also need resources to do so. A rigid system that locks away all savings until retirement ignores the entrepreneurial spirit of Zambians and the pressing need for financial flexibility.
Traditionally, retirement has been associated with decline – an end to productivity, a reliance on monthly pension payments, and often financial strain. But with reforms like these, retirement can be reimagined as a period of growth. If workers have already established businesses during their working years, retirement becomes a time to focus fully on those ventures. Pension payments then serve as supplementary income rather than the only lifeline.
For too long, many of our pensioners have been reduced to destitution, relying entirely on monthly pensions. But Government is changing that narrative through the pension reforms being undertaken.
But reforms alone are not enough. Citizens must seize the opportunity. Accessing pension funds early should not be seen as a chance for consumption or short term spending. It must be approached as an investment in the future. Every kwacha withdrawn should be directed toward ventures that can grow, sustain families and create jobs.
This requires discipline, financial literacy, and a long term mindset. Workers must educate themselves on business management, seek mentorship, and avoid the temptation of quick gains. The mistakes made in the early years should be treated as stepping stones, not failures.
With patience and persistence, the ventures started today can become the retirement safety nets of tomorrow.