Old Mutual Life Assurance Company Malawi has approved a 60 percent increase in annuity payments, effective January 2026, along with a once-off bonus equivalent to six months’ annuity to be paid in December, in a move aimed at boosting retirement incomes.
The adjustment comes as inflationary pressures and a rising cost of living continue to erode the purchasing power of pensioners, many of whom rely solely on annuity income after leaving formal employment.
In an interview, Old Mutual Life Assurance Company Managing Director Mark Mikwamba said the decision was intended to help maintain income stability for retirees in a volatile economic environment.
He said the increase reflects the company’s long-term obligation to ensure annuity payments remain aligned with the cost of living, while the once-off bonus is designed to provide short-term financial relief.
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“This shows the level of commitment to our promise to provide retirees with a stable, reliable and lifelong income that continues to grow over time,” Mikwamba said.
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Old Mutual’s annuity product offers guaranteed income for life and is supported by the firm’s investment management operations, which allow it to declare periodic increments.
According to Mikwamba, the product is structured to preserve value through annual bonuses rather than fixed payouts.
Beyond income support, the annuity also includes medical and funeral benefits, which Mikwamba said are increasingly important as retirees face rising healthcare costs and unexpected expenses.
“Retirement should be a time of peace of mind not financial anxiety. Our annuity product cushions retirees against life’s uncertainties and ensures that their income is protected and dependable throughout their later years.
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“The declared increment directly responds to retirees’ desire for income stability and growth, while the once-off bonus provides immediate relief and recognition for years of service and contribution,” he said.
Data from the company show that between 2015 and 2025, average annual bonus declarations on the annuity stood at about 23.2 percent, exceeding the average inflation rate of approximately 19.1 percent over the same period.
