Truth is; the reason why most people join the government work force is not actually a job, neither the love of the job, but security, which is job security or financial security and to drop it down a pension security, that’s what drives the majority to join and stay in the government work force.

The problem is many will be caught unaware like many have been caught unaware in the private sector were they is no such thing as a pension today. Although many are still contributing to what is called National Pension Scheme Authority (NAPASA), I would I advice you not to depend on them as thinking they will keep your money safe and when you retire you be given that money, no; it’s high time you got some financial education and understood how the world of money runs. Your financial life is in your own hands, not in any government organization or any other person, it’s your own responsibility.

Even now am saying why Zambian workers will be retiring without a pension, it has began, some people are dying without even tasting a piece of their pension contribution.

Companies have been allowed to switch to DC or Defined contribution plans. The difference between a DB and DC is found in the difference between the definitions of the words Benefit and Contribution. A DB plan defines the Benefit where as a DC plan is defined by the Contribution…if there is a contribution. In the 20th century, industrial age the Defined Benefit plan was for life after retirement till death, not today in this new world where it’s a Defined Contribution plan, and the employee might retire with nothing because he or she contributed nothing.

That’s why the private sector jobs today no longer have pension plans because they have been allowed to shift to DC plan; its only the government still struggling with DB plan accounts example is NAPASA even though its broke too simply because that’s where it survives on the little contribution an employee contributes to that organization every single month.


To me even though I have a been registered for a NAPASA account it’s a waste of time, that’s why for me working to become financial independent is way times more important than thinking that little money I will be contributing every single month to NAPASA will save me when I retire or get old, its waste of my life, I may contribute but its waste of my thought and life to think it will save me in old age.  

The biggest problem with a pension is it has failed to encourage people to learn to manage their own money and their own investment. Government workers think the little money they contribute for a pension will take care of them when they retire, but not knowing with inflation growing rapidly, the cost of living growing rapidly, that little money they are thinking the government is taking care for them will be of little or no value by the time they retire when they are 65 years old. Basically all what a pension implies is, “Turn your money over to people who are smarter than you are”, and the biggest problem is the people we think are nationally financially smart are the people who are nationally financially incapable, that’s why our countries have been in financial trouble all along.

It seems the people who need to be financial educated the most are our leaders, but they are not and we wonder why we keep on moving from national financial disaster to more national financial disasters. Truth is never depend your financial future on a pension that is a joke today, it’s high time you took financial education, plan your financial future, take control of your life, the government has its own financial problems and it has failed to solve its own financial problems, and you expect someone who has failed to solve his or her own financial problems to solve your own financial problems, that’s insanity; wake up, time to change.  

Related Article: 6 Simple Reasons Why Pensioners Go Broke And Poor In Zambia