Retirement funds should concentrate on members' needs: Mwinga

02 Sep 2015 18:40pm
WINDHOEK, 02 SEP (NAMPA) – Retirement funds should set up integrated performance measurement systems (IPMS) or score cards to measure customer needs and satisfaction levels.
First Capital Namibia's Chief Executive Officer Martin Mwinga made the suggestion during the ninth Retirement Funds Institute of Namibia (RFIN) conference in the capital on Tuesday.
The one-day conference took place under the theme 'Retirement funds searching for economic headway'.
While doing a presentation on the topic 'Establishing an integrated performance measurement system for pension funds in Namibia', Mwinga said funds should also conduct annual surveys to collect data on retirees to help them with decision-making.
Mwinga encouraged funds to introduce benefit schemes for active members to enable them to get out of debt, help them acquire assistance and build wealth while they are still working.
“You need to focus on customers and avoid focusing so much on investment performance only,” he emphasised.
He noted that most people can now afford to buy houses after debt consolidation was removed.
Mwinga said research he conducted recently on how people use the lump sums paid out to them upon retirement and whether they are satisfied with the income generated from their retirement funds, showed that most people use their lump sums to pay their loans and some people buy houses.
It also revealed that only 27.1 per cent of retirees were happy with the income provided by their pension funds.
The RFIN conference, which was attended by over 50 people from the retirement fund industry, examined key issues related to identifying sectors and programmes which retirement funds can invest in.
The conference focused on a number of issues such as the reviewing of the pension fund reform in southern African countries; effective corporate government issues relating to pension funds; inclusion of the informal sector of the economy in retirement saving; and relationship management and perspective on the oversight role of the regulators and governments of all southern African countries.
First Capital provides asset management and lending services.