Zimbabwe Strengthens Pension Security with Landmark Retirement Reforms

25 September 2025

By Andile Vundla

The Government of Zimbabwe has pledged stronger protection for pensioners through sweeping legal and policy reforms designed to safeguard retirement savings and restore dignity to civil servants after years of hardship caused by past economic shocks.

Speaking at the official opening of the 2025 Public Service Retirement Conference in Bulawayo yesterday, Vice President Retired Colonel Kembo Mohadi, said the 2024 amendment to the Pension and Provident Funds Act was a decisive step in restoring confidence in Zimbabwe’s pension system.

He explained that the law mandates inflation-proof investments and strict governance measures, ensuring no pensioner will again lose their life savings to economic volatility.

“The 2024 amendment to the Pension and Provident Funds Act stands as a landmark reform in this journey,” said Mohadi. “It marks a decisive step towards protecting pensioners, strengthening accountability, and restoring confidence in our retirement system. This Bill is not just law; it is my Administration’s covenant with the people, a promise that your future is as sacred as your service.”

The reforms follow recommendations of the Justice Smith Commission of Inquiry, which investigated the erosion of pension and insurance funds during past economic crises.

Public Service Commission Chairperson, Dr Vincent Hungwe, said further legal changes were also underway. He noted that the State Service Pension Bill, currently before Parliament, seeks to modernize pension management by shifting from the old “pay-as-you-go” system to more sustainable models that protect purchasing power.

“Our transition to modernized pension oversight ensures that pensions remain resilient and fiscally credible,” Dr. Hungwe said. “The State Service Pension Fund has already grown to about US$700 million in diversified assets, including real estate and infrastructure, investments that not only hedge against inflation but also support national priorities such as housing and smart cities.”

The Retirement Conference, running under the theme “Retirement Planning in Action: Transforming Insights into Realities,” continues until Friday at the Zimbabwe International Trade Fair grounds.