Chisanga calls for stricter pension fund regulations to secure Zambia’s retirement future

Kelvin Chisanga, an economist, has proposed measures aimed at revitalizing Zambia’s public pension fund amid growing concerns over its sustainability.

Chisanga noted that Zambia’s pension sector faced significant challenges threatening both its long-term viability and the welfare of retirees.

In a statement on Monday, he identified a recent policy allowing contributors to withdraw up to 20 percent of their pension savings early as a key concern. While providing short-term relief, this policy has weakened fund liquidity and reduced future retirement incomes, he argues.

“Governance weaknesses, particularly in legacy schemes such as the Local Authorities Superannuation Fund (LASF), along with limited investment diversification, further strain the system,” Chisanga said.

He added that many retirees received inadequate monthly payouts that fail to keep pace with rising living costs, increasing calls for reforms in benefit design, including more flexible lump-sum withdrawal options.

Coverage gaps persist as a large informal sector remains outside the formal pension system, putting many at risk of old-age poverty.

While the government is advancing institutional reforms—such as establishing a Pensions and Insurance Tribunal—Chisanga noted that progress was ongoing but required acceleration.

To safeguard pension funds as a reliable source of retirement income and drivers of national economic growth, Chisanga called for urgent action to tighten withdrawal rules, enhance governance, diversify investments, and improve coverage and benefit structures.

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