NBM PAL pension fund income up 42 percent
NBM PAL Unrestricted Pension Fund has registered an increase in investment income for the year 2023 to 42 percent from 27 percent in 2022.
This means that, for example, for an individual member with a total accumulated pension benefit of K10 million as of December 31 2023, the total accrued pension benefit has increased to K14.2 million with effect from January 1 2024.
NBM PAL Chief Executive Officer William Mabulekesi said with inflation averaging 30 percent in 2023, members will get a real investment return of over 12 percent.
“This has put smiles on the faces of the fund’s members. What is more satisfying with this declaration is the fact that it has been achieved at a time when our local economy has faced a lot of challenges such as forex shortage, natural disasters in cyclones, and a significant 44 percent devaluation of the local currency in November 2023 whose combined adverse effects unleashed upward pressures on prices of goods and services, forcing the inflation to hover around 30 percent for the year 2023,” Mabulekesi said.
Reserve Bank of Malawi (RBM) Director of Pension and Insurance Paul Nyirenda said NBM PAL realised the growth due to investment returns largely from the stock market which performed well last year.
“The decent performance of the listed equities at the Malawi Stock Exchange has largely contributed to the increase in investment income for the fund as companies declared dividends and capital appreciation,” Nyirenda said.
Source: https://times.mw/nbm-pal-pension-fund-income-up-42-percent/