In Namibia today, unclaimed pension benefits represent a quiet crisis—one that affects thousands of workers, retirees, and families. According to the latest figures from NAMFISA (2023), over N$218.7 million in unclaimed benefits remain unresolved, impacting a significant portion of the 374,949 registered pension fund members. While this represents just 0.09% of total pension assets (N$237.1 billion), the human cost is far greater: families missing out on vital retirement income, survivors unable to access benefits left by loved ones, and workers losing the dignity they earned through years of contribution.
Namibia is not alone in facing this challenge. Around the world, countries grapple with lost pension accounts (when members lose contact with their fund) and unclaimed benefits (when retirees or beneficiaries fail to claim what is due). The difference is that some nations have taken bold steps to fix the problem—offering models Namibia can learn from.
What the International Experience Shows
1. The Magnitude of the Problem
Australia: As of 2015, AU$16.2 billion in lost accounts and unclaimed benefits affected 6.3 million accounts.
South Africa: By late 2016, R42.7 billion (US$3.05 billion) and 4.6 million members were affected—about 1.8% of total pension assets.
Hong Kong China: In 2016, 55,000 accounts had HK$1.78 billion in unclaimed benefits.
Chile, Ireland, Maldives, Switzerland also report similar problems, though with smaller proportions.
The pattern is clear: as pension systems mature and mobility increases, more accounts become “lost.”
2. Proven Approaches to Fixing the Problem
Centralised Pension Registries
The UK set up a national pension register in 1991, funded by a small levy on funds.
Australia has a similar system that helps link members to their lost accounts.
In the USA, proposals exist to create a central depository through the Pension Benefit Guaranty Corporation.
Tracing Services
The UK’s Pension Tracing Service (2005) helps individuals find lost pensions, with a focus on clear communication for lower-income groups.
Private companies such as Finders International also play a role, showing there is a business case for professional tracing.
Clear Rules for Unclaimed Funds
Chile: After 20 years, unidentified balances are redistributed.
Romania: After three years, unclaimed benefits are added back into pension funds.
Other countries let property laws or courts decide—but all stress the need for rules that balance member protection with practical administration.
Public Awareness Campaigns
The UK even has a “National Pensions Tracing Day” to encourage people to search for lost pensions.
Why Namibia Needs Reform
Namibia’s challenge is larger than most. Over one in three members are affected. That means families are missing out on vital retirement income and survivors cannot access benefits left by loved ones.
Several factors make this worse:
High job mobility and casual work.
Limited financial literacy and pension awareness.
Outdated or incomplete contact details.
A lack of centralised systems to track members across funds.
- Weak integration with Home Affairs records, especially for deceased members.
- Legal ambiguity around the fate of unclaimed benefits—often defaulting to the Guardian’s Fund after five years, where tracing becomes even harder.
If nothing is done, the problem will grow as the pension system matures and more workers change jobs throughout their careers.
A Proposal for Namibia
Drawing from international best practices, Namibia could adopt a multi-pronged solution:
Establish a Centralised Pension Registry
A single database to consolidate member records across all funds.
Could be funded through a small levy on registered pension plans.
Must include secure processes for updating contact details and linking with Home Affairs records (especially for deceased members).
Proactive Tracing Services
Pension funds should be required to make proactive efforts to trace missing members.
Independent tracing companies could also be licensed to assist.
Clear Legal Framework for Unclaimed Benefits
Define what happens to benefits that remain unclaimed after a set period (e.g., transfer to a guarantee fund, redistribution, or dedicated public-use fund).
Public Awareness Campaigns
Encourage individuals to search for lost pensions.
Promote education on the importance of keeping records, payslips, and updating contact details.
Stronger Supervisory Role
In line with IOPS Principles (2010) and OECD guidelines (2016), Namibian regulators must treat protecting members’ rights—including reconnecting them with lost benefits—as a central part of their mandate.
Conclusion
Namibia has an opportunity to lead Africa in solving the problem of lost pensions. By combining centralised systems, proactive tracing, public awareness, and clear rules, we can ensure that the money workers save over their lifetimes goes back to them and their families—where it belongs.
This is not only a matter of financial efficiency. It is a matter of justice, dignity, and trust in our pension system.
