Chamwe Kaira
The Namibia Financial Institutions Supervisory Authority (Namfisa) has confirmed that retirement fund lump-sum withdrawal rules will remain unchanged during the initial rollout of the Financial Institutions and Markets Act (Fima).
Namfisa made the clarification after an engagement with retirement fund stakeholders on 23 March.
The meeting included fund members, officers and organised labour and focused on concerns about the new law.
In a notice issued after the meeting, the regulator said current rules will stay in place. Members of pension funds, retirement annuity funds and preservation funds can still withdraw up to one-third of their benefits as a lump sum at retirement.
Members of provident funds will continue to withdraw 100% of their benefits as a lump sum, in line with the Income Tax Act.
Namfisa said the clarification addresses uncertainty in the industry as the new law is introduced.
Fima is being implemented under Namfisa’s supervision following a directive from the minister of finance.
The regulator said the law is aimed at strengthening governance, financial stability and consumer protection.
Namfisa said the Act will be introduced without changes to rules on preservation of retirement benefits at this stage.
“Namfisa recently held a constructive and forward-looking engagement with the pension funds industry regarding Fima. This dialogue is an important step in strengthening collaboration between regulators and industry stakeholders as we build a resilient, responsive financial sector,” the authority said.
The regulator said the law will strengthen the non-banking financial sector by improving transparency and governance.
Namfisa also reported that the sector recorded growth in the fourth quarter of 2025.
Total assets reached N$552.8 billion, according to its latest statistical bulletin.
The sector includes insurance companies, medical aid funds, retirement funds, capital markets and microlenders. It recorded 1 193 active entities and 15 512 intermediaries during the period.
