13/11/2025
SOCIAL PROTECTION EXPERT OPPOSES NAPSA LUMPSUM PAYMENTS
A social protection expert has opposed proposed lump sum payments under NAPSA.
Gideon Sianjalika has noted that paying out lump sums under the National Pension Scheme Authority (NAPSA) poses serious risks to the long-term sustainability of social protection programming.
He acknowledges thay while the idea may seem empowering on the surface, its consequences are deeply concerning.
Mr Sianjalika has explained that lump sum may subject people to the risk of destitution and vulnerability as going that route may leave beneficiaries without meaningful investment once they deplete the lumpsum payment.
He has refered to studies in behavioral economics which consistently show that only a small fraction of individuals successfully convert lump sums into sustainable income-generating ventures.
Further,Mr Sianjalika notes that going ahead with such plans would increase burden on government assistance as social safety nets such as the Social Cash Transfer would be overwhelmed when lump sum beneficiaries deplete thier resources, thereby undermining the very purpose of pension schemes and shifts the financial burden back onto the state.
He further notes that the move would undermine the integrity of social protection under NAPSA whose goal is to provide predictable, long-term income security.
He has since supported monthly pension payments which he says helps retirees maintain a basic standard of living and reduce dependency.
"Replacing this with lump sums is akin to "mopping the floor while the tap is still running" a short-term fix that creates long-term problems", he says.
He has since called for preservation of dignity in retirement by avoiding a future where retired workers, once contributors to the economy, are forced to rely on emergency welfare programs.
Mr Sianjalika has further backed monthly disbursements which he observes that they uphold dignity and financial stability as oppsed to lump sum payments which may offer immediate gratification, but compromise the core principles of social protection.
"Let’s safeguard the future by maintaining structured, sustainable monthly pensions", he said
He said those in employment today, should start investing and diversifying now and should not assume that a pension will fund a business, house, or farm saying such would be a "risky move".
Mr Sianjalika notes that a pension is meant to provide security and dignity in retirement and not financing uncertain ventures and therefore calls for "wise investinennt today to retire with peace of mind tomorrow".
