Are Batswana’s pensions safe?
The chairperson of Botswana Pensions Society, Mr Peter Hikhwa says Pension funds all over the world are feeling the pinch as the COVID 19 pandemic continues to ravage the global economy.
Speaking at a press briefing recently in Gaborone to update on pensions status during the pandemic, Mr Hikhwa said global investment mood had dropped significantly since the outbreak of COVID-19 and ‘this had affected returns for fund investors’.
He however noted that they were currently in negotiations with government on the best course of action for funds that were significantly affected by the pandemic and that they would be facilitated through Botswana Revenue Service and Non Bank Financial Institutional Regulatory Authority.
He assured beneficiaries who were on the verge of retirement that they would not be affected by these economic developments and would be able to receive their packages on time.
Meanwhile, asset consultant for Alexander Forbes Mr Ati Mannathoko noted that the global equity market had dropped by six per cent since the outbreak of COVID-19, which mooted first quarter positive growth coming into 2020. He also noted that the COVID-19 pandemic had affected asset funds globally, adding that the global market is usually where asset managers make the most returns for pensions.
“Asset managers are taking defensive positions all over the world to protect capital, but investors should not dump stocks unnecessarily as it is safer to invest in the long term,” he said.
Source : BOPA
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