Pension-backed housing scheme targets civil servants

The government has approved a Pension-Backed Home Loan scheme allowing civil servants to use a portion of their pension savings as collateral for affordable housing loans, Finance Minister Ericah Shafudah announced in Parliament yesterday.

Under amendments to the Pension Funds Act 24 of 1956, members of the Government Institutions Pension Fund (GIPF) may access loans to purchase residential property or land, construct or renovate homes, settle existing mortgages, or improve basic housing conditions.

Shafudah described the initiative as a step toward addressing housing inequality and empowering civil servants to build wealth. “We recognise shelter as a fundamental human right,” she said, adding that the scheme will be underwritten by the Office of the Prime Minister and delivered in partnership with the Namibia Financial Institutions Supervisory Authority and GIPF.

Local economist Gabriel Erastus noted the potential benefits and risks: lower interest costs improve affordability, but default risks could undermine long-term retirement security. “Financial literacy will be key to ensuring members make informed decisions,” he said.

Meanwhile, the GIPF’s 2023 annual report shows assets of N$167 billion, with N$4.8 billion in member contributions and N$18 billion earned in returns, reflecting a 3% rise in contributions and nearly threefold increase in returns from the previous year.

The post Pension-backed housing scheme targets civil servants first appeared on Future Media News.

The post Pension-backed housing scheme targets civil servants appeared first on Future Media News.