By Cecelia Chimseu

The Reserve Bank of Malawi (RBM) has urged employees to prepare well for their retirement by joining a pension scheme.

RBM governor Dr Wilson Banda made the plea in Lilongwe during the launch of pension awareness week which aims at promoting awareness of the importance of saving for retirement and enhancing pension compliance.

Dr Banda said employees should be ready for retirement in order to minimize tension after retirement.

“If we are to minimize tension after retirement we have to make sure that we are properly prepared for retirement by amongst other thing s be on a pension scheme,” he said.

“Retirement is coming for everyone who is employed and joining a pension plan would go a long way in ensuring retirement preparedness and alleviating old age poverty especially improvise a source of income after retirement.

“For those of us who are employed we need to know that it our right to be on pension and as we might be aware pension coverage continues to be low in Malawi. Currently the act provides occupation pension where all employers in Malawi are mandated to put their employees on a pension scheme.”

According to the pension Act, employers are required to contribute a minimum of 10% while employees contribute a minimum of 5%of the pensionable emoluments.