April 18, 2023 /Finance/ — The law allows NAPSA beneficiaries to withdraw a portion of their pension savings before they reach retirement age. The amount that can be withdrawn is limited to 50% of the accumulated savings, and the withdrawal can be made in installments over a period of up to 10 years.
To qualify for partial pension withdrawal, beneficiaries must meet the following criteria:
- They must be at least 45 years old.
- They must have contributed to NAPSA for at least 10 years.
- They must not have any outstanding loans from NAPSA.
Beneficiaries who meet the criteria can apply for partial pension withdrawal by submitting an application form to NAPSA. The application form must be accompanied by proof of identity, proof of age, and proof of contribution history.
NAPSA will review the application and make a decision within 30 days. If the application is approved, NAPSA will disburse the funds to the beneficiary in installments over a period of up to 10 years.
The law was passed in response to the growing demand for early access to pension savings. Many people in Zambia are struggling to make ends meet, and they see partial pension withdrawal as a way to improve their financial situation. However, there are concerns that partial pension withdrawal could lead to people running out of money in retirement.
It is important to note that partial pension withdrawal is a loan from NAPSA. The funds that are withdrawn must be repaid, with interest, when the beneficiary reaches retirement age. If the beneficiary dies before they reach retirement age, their estate will be responsible for repaying the loan.
It is also important to note that partial pension withdrawal will reduce the amount of money that the beneficiary receives when they reach retirement age. This is because the funds that are withdrawn will no longer be earning interest.
Overall, the law on partial pension withdrawal is a complex issue with both pros and cons. It is important to weigh the risks and benefits carefully before deciding whether or not to apply for partial pension withdrawal.