Eswatini National Provident Fund (ENPF) members have welcomed the Fund’s proposed pension reform to a pension scheme, describing the shift from lump sum pay-outs to monthly pension disbursements as a lifeline that will safeguard their financial futures and protect their dependants from poverty.
Speaking during the Montigny Financial Wellness Fair held at the company’s head offices this week, ENPF members voiced strong support for the conversion initiative.
The event brought together several financial institutions, but it was the ENPF’s planned transition that dominated discussions, with many attendees praising the Fund for taking a bold and necessary step in modernising the country’s retirement system.
Under the new model, members will receive a steady monthly income after retirement instead of a one-off payout, a change aimed at addressing the widespread depletion of retirement funds and the resulting financial vulnerability faced by many pensioners.
ENPF member Mkhululi Dlamini shared a personal account that captured the sentiment echoed by many. “My relative cashed out his retirement savings as a lump sum and used it to start a business. Within a year, the money was gone. Today, he survives only because of his children. That experience showed me the danger of lump sums. They vanish and so does your dignity, so I fully support this conversion,” he said.
Another member, Mduduzi Dlamini, highlighted the psychological and emotional toll of poor retirement planning. “Lump sums look attractive, but they don’t last. Too many of our elders fall into depression when the money runs out and they have nothing to fall back on. A monthly pension will ensure consistent support and remove that fear. This is the best decision ENPF has ever made,” he emphasised.
33-year-old Nokwanda Nkambule, a member of Gundane and Sons, said the conversion represented not just financial stability, but lasting security for beneficiaries. “This change will close the gap that has left too many dependants struggling for years after a loved one dies. The new system ensures that support doesn’t end with the member’s death,” she stated, hailing the conversion as a turning point in the evolution of retirement planning in the country.
“While the country has long relied on lump sum retirement benefits, growing evidence suggests that such payouts often fail to sustain retirees, many of whom live for decades after retirement,” she explained.
ENPF Chief Executive Officer, Ms. Futhi Tembe, said the fund was pleased with the response by its members of the fund, emphasising that financial literacy gaps, poor investment decisions and a lack of ongoing income streams have left many pensioners destitute.
“This conversion is not just administrative, but personal. It’s shaped by the lived experiences and struggles of our members because we are shifting from simply paying out benefits to actively protecting our members’ futures,” she stated.
The monthly pension model, according to the CEO, is built to ensure that no one outlives their income, and that dependants remain supported even after a member passes on.
“We are committed to making this process transparent, participatory and member-centred,” she said, assuring members that the Fund has developed the new model with their needs in mind and will continue to engage and educate them throughout the transition.
Tembe said she was pleased that the Montigny Financial Wellness Fair provided a timely opportunity for the ENPF to interact directly with its members. “Staff addressed concerns, clarified misconceptions and offered financial guidance,” she stated.
