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Nico bemoans lack of knowledge on pension

Nico Pension, a subsidiary of Nico Life, has bemoaned lack of knowledge on pension matters and laws among some Malawians.

This, the firm said is affecting growth of the industry.

This was said, yesterday during a client engagement seminar Nico Pension hosted in Blantyre.

Nico Pension General Manager, Gerald Chima said however, the country has seen a continued increase in pension fund.

“In terms of compliance, we still have employers that do not remit on time, but we also have some good employers who have taken it upon themselves to comply. So, we have seen growth in pension assets,” Chima said.

He said the firm is working on ironing out misunderstandings on the topic and is creating awareness among Malawians.

Meanwhile, Chima said proposed amendments to the Pension Act will benefit people in the informal sector to join pension schemes among other things.

“There has been an outcry from members to be allowed to access the funds so that they can build houses or use the money before they retire. So, this proposed amendment will also look at allowing members to borrow from other institutions, but using the pension funds as collateral,” Chima said.

He encouraged companies to consider their employers and prioritise pension contributions to encourage productivity.

One of the clients, Joseph Nsambo, commended the institution for the initiative.

“This scheme has eased the burden that our institution in so many ways. We are religious with the contributions,” Nsambo said.

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