Empowering Malawi’s Future: Old Mutual’s Pioneering Move to Secure Retirees’ Prosperity
Key Business Points
- Retirement income boost: Old Mutual Life Assurance Company Malawi has approved a 60% increase in annuity payments, effective January 2026, to help retirees cope with inflationary pressures.
- Short-term financial relief: A once-off bonus equivalent to six months’ annuity will be paid in December to provide immediate financial assistance to pensioners.
- Long-term income stability: The annuity product is designed to preserve value through annual bonuses, offering guaranteed income for life and protecting retirees against life’s uncertainties.
The recent announcement by Old Mutual Life Assurance Company Malawi to increase annuity payments by 60% is a significant development for the country’s business community, particularly for retirees who rely on these payments as their primary source of income. Inflationary pressures and the rising cost of living have been eroding the purchasing power of pensioners, making it challenging for them to maintain their standard of living. The decision to increase annuity payments is aimed at boosting retirement incomes and ensuring that retirees can enjoy a stable and reliable income stream.
According to Old Mutual Life Assurance Company Managing Director Mark Mikwamba, the increase reflects the company’s long-term obligation to ensure annuity payments remain aligned with the cost of living. The once-off bonus, equivalent to six months’ annuity, is designed to provide short-term financial relief to retirees who are facing rising healthcare costs and unexpected expenses. Mikwamba emphasized that retirement should be a time of peace of mind, not financial anxiety, and the company’s annuity product is structured to cushion retirees against life’s uncertainties.
The annuity product offered by Old Mutual is supported by the firm’s investment management operations, which allow it to declare periodic increments. The product is designed to preserve value through annual bonuses rather than fixed payouts, providing guaranteed income for life. Additionally, the annuity includes medical and funeral benefits, which are increasingly important as retirees face rising healthcare costs and unexpected expenses.
Data from the company shows that between 2015 and 2025, average annual bonus declarations on the annuity stood at about 23.2%, exceeding the average inflation rate of approximately 19.1% over the same period. This demonstrates the company’s commitment to ensuring that annuity payments keep pace with the cost of living, providing income stability and growth for retirees. As Mikwamba noted, "This shows the level of commitment to our promise to provide retirees with a stable, reliable and lifelong income that continues to grow over time." This move is likely to have a positive impact on Malawi’s business sector, as it will help to support local entrepreneurs and boost economic growth by providing retirees with a stable source of income, which they can use to invest in their communities and support local businesses. In Chichewa, this concept is often referred to as "kugwira ntchito", or creating opportunities for economic growth and development.
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