List Of Pension Funds In Namibia

What is a Pension Funds?

A pension fund, also known as a superannuation fund in some countries, is any plan, fund, or scheme which provides retirement income. Pension funds typically have large amounts of money to invest and are the major investors in listed and private companies.

Here are the some of the Pension Funds In Namibia

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Frequently Asked Questions

How much is the old age pension in Namibia?

Namibia’s old age social pension, renamed in 1998 as Basic Social Grant (BSG), guarantees all Namibia’s residents over 60 years of age a monthly unconditional allowance of 1 100 Namibian dollars (N$) per month. It corresponds approximately US$ 78 per month lifting the grant beneficiary well above the poverty line.

What are the types of pension funds in Namibia?

• NPS. The government of India introduced the National Pension Scheme (NPS) as a financial cushion for retired persons.
• Public Provident Fund (PPF) PPF is a long-term investment scheme with a 15 years’ tenure.
• Employee Provident Fund (EPF)
• Annuity plans with life cover.

What is the difference between a pension fund and provident fund in Namibia?

A provident fund is a retirement fund run by the government. A pension plan is a retirement plan run by an employer. Pension funds operate much like annuities. Provident funds operate more like 401(k) or savings accounts.

What are the three main types of pension in Namibia?

There are three main types of pension. The state pension (paid by the Government), ‘occupational’ pensions (your pension through work) and private/personal pensions (what it says on the tin). Work pensions come in two main types.

Does pension increase every year in Namibia?

However, when a member has opted to receive early pension or defer pension, the pension amount will get discounted or increased by 4% for every incomplete year for 58 years or for every year beyond 58 years as the case may be.

What is the purpose of a pension in Namibia?

A pension is a tax-efficient way to save for your retirement. It aims to provide you with a source of income in later life. The Government will pay you a secure regular income when you reach the State Pension age. This age is determined by when you were born.

What do you mean by pension funds in Namibia?

Pension funds, which are also known as retirement funds, is a kind of savings scheme where you (as an employee) invest a small portion of your income/salary into a designated savings plan. A pension plan will help you get an income and support your family when you have no other income source.

What is the purpose of pension funds?

Pension funds are typically managed by companies (employers). The main goal of a pension fund is to ensure there will be enough money to cover the pensions of employees after their retirement in the future.

How long does a pension last in Namibia?

Under a period-certain life plan, your pension guarantees payouts for a specific period, such as five, 10 or 20 years. If you die before the guaranteed payout period, a beneficiary can continue getting payments for the remaining years.

Are pensions paid for life in Namibia?

Pension payments are made for the rest of your life, no matter how long you live, and can possibly continue after death with your spouse. It is not uncommon for people who take a lump sum to outlive the payment, while pension payments continue until death.

Is monthly pension taxable in Namibia?

Your monthly pension payment almost always counts as taxable income, and you’ll need to make sure that you have enough taxes withheld from your pension payments to satisfy the Internal Revenue Service.

How much pension should I pay a month in Namibia?

As a rough guide, it’s sometimes suggested that money equivalent to around 15% of your annual salary should be tucked away into your pension. Not all of this money comes from you. Remember that if you’re paying into a workplace pension, your employer will add contributions to your pension too.

How do I avoid paying tax on my pension in Namibia?

Employers of most pension plans are required to withhold a mandatory 20% of your lump sum retirement distribution when you leave their company. However, you can avoid this tax hit if you make a direct rollover of those funds to an IRA rollover account or another similar qualified plan.

How much will my pension be taxed when I retire in Namibia?

If your employer funded your pension plan, your pension income is taxable. Both your income from these retirement plans as well as your earned income are taxed as ordinary income at rates from 10–37%.

How much tax will I pay if I draw all my pension in Namibia?

25% of your pension pot can be withdrawn tax-free. How you withdraw money from your pension will determine whether you pay tax on the other 75% now or later. Pay tax on 75% of the amount withdrawn. Choose how much of it you wish to draw from the tax-free part.