June pension hike despite financial woes

PENSIONERS can look forward to an extra N$100 in their wallets as from June this year. In his New Year's message, President Hage Geingob announced that the old-age pension will be increased by N$100, rising to N$1 200 per pensioner.

Finance minister Calle Schlettwein yesterday confirmed the President's commitment, stating that although the increase would negatively affect an already tightened budget, government is determined to go ahead.

According to the minister, the undertaking underscores government's commitment towards poverty eradication.

“It was a commitment that was already made two years ago in the Medium Term Expenditure Framework, and was also taken up in the previous budget,” Schlettwein said.

President Geingob increased the old-age pension from N$600 to N$1 000 in April 2015, and then again last year from N$1 000 to N$1 100.

Several pensioners spoken to have welcomed the latest increase.

“At the old-age home where I stay, we have to pay N$200 per month for food and accommodation, so the increase means that at least I get to keep N$1 000 for my own personal needs,” explained Petrus Jacobus Drotskie (65) at the Katutura Old-Age Home.

Felicity Atau (77) expressed gratitude towards government over the decision. “I have to give my children N$400 per month to pay for the family home. Although they also have jobs, we have to help each other. All I can do is thank government for this gesture,” noted Atau.

There appears to be about 100 000 pensioners on government books. According to the 2016/17 national budget, government was to spend N$2,7 billion on social grants during the current financial year ending March 2017. Of this amount, roughly N$1,32 billion should go towards pensioners. Another N$100 increase would add N$120 million to the annual pension bill, pushing it up to around N$1,44 billion for the 2017/18 financial year.