Zambia old age
January 18, 2012
Zambian President Michael Sata says many people in his country - who currently retire at the age of 55 - want to work longer and his plans to raise the legal retirement age by ten years will allow them to do so.
"People want to continue working," President Sata said, suggesting the current legislation discriminates against people who do not wish to retire.
But major trade unions say Sata's plans are themselves discriminatory because the average lifespan in Zambia is just 43 years of age.
More than 60 percent of the population is aged below 35.
Roy Mwaba, secretary general of the Zambia Congress of Trade Unions (ZCTU), says the labor movement will reject any changes.
"You can't just say everybody should retire at 65, it's unacceptable," said Mwaba. "If the new government wants to increase the retirement age, it should also bring about early retirement, so those who want to retire early voluntarily can do that, too."
Careful analysis
The government may be hoping to save money by potentially paying out less to retirees - if they are in retirement for less time. But the plans could be expensive for employers, who may have to pay higher wages as their workforce ages. Young employees are often considered cheaper because they lack experience.
Martin Clemensson, the resident director for the International Labor Organization (ILO) in Zambia, Mozambique and Malawi, says the government will have to analyze its plans and the outcomes carefully.
"Have we considered what it would mean for pension and medical schemes?" said Clemensson. "Have we thought about succession planning? And how would productivity and motivation among workers change?"
For 26-year-old Smart Banda, having to work until the age of 65 is not an attractive prospect.
"A lot of people - when they reach 65 - are too old," said Banda. "In Africa, a lot of things are missing, so it's better to let people retire at 55, when they have the energy to do other things."
With current government policy aimed at reducing expenditure and channeling Zambia's scarce resources into new areas, President Sata faces strong opposition if he sticks to his plan to reform the pension system.
Author: Kathy Sikombe, Lusaka / za
Editor: Susan Houlton / rm