Over 370 Pension Funds Face Dissolution, Threatening Workers’ Retirement Security

More than 370 occupational pension funds in Zimbabwe face dissolution by end-2025 (image source)

Zimbabwe’s pension industry is facing a deepening crisis, with more than 370 occupational pension funds awaiting dissolution by the end of 2025, raising serious concerns about the retirement security of thousands of workers.

According to the Insurance and Pensions Commission (Ipec), only 479 of the country’s 968 registered occupational pension funds were active as of September 30, 2025. The remaining 489 funds were classified as inactive, with 372 of them—representing 76 percent—already awaiting formal dissolution. Analysts warn that prolonged delays in winding up these funds place workers’ long-term savings at risk, particularly for contributors who have paid into schemes for years without clarity on their benefits.

Ipec’s report confirmed the deregistration of several high-profile pension funds, including those linked to the National Aids Council, Trust Holdings, the Zimbabwe Broadcasting Corporation and the Zimbabwe Energy Regulatory Authority. Deregistration typically follows the cessation of a fund’s operations, but the regulator stressed that inactive funds remain legally obligated to submit reports until they are formally dissolved in terms of the Pension and Provident Funds Act.

The commission reiterated that employers, sponsors and administrators must ensure pension funds are properly registered and hold valid certificates before any contributions are remitted or administrative activities commence. Ipec warned that failure to comply undermines regulatory oversight and exposes contributors to unnecessary risk, noting that all funds must continue reporting regardless of operational status.

Despite the scale of dormancy in the sector, the report pointed to signs of resilience among active pension schemes. Total pension contributions rose significantly to US$225.89 million, up from US$148.35 million recorded over the same period last year. Unpaid employer contributions declined by 9 percent, suggesting improved compliance. Sector membership also grew by 17 percent to 1.2 million, largely driven by the reinstatement of nearly 179,000 dormant members under the Construction Industry Pension Fund and the addition of more than 6,500 new contributors.

Zimbabwe’s pension industry has endured prolonged pressure from hyperinflation, currency instability and economic volatility over the past two decades, factors that have eroded savings and complicated fund sustainability. Analysts caution that without accelerated reforms and timely dissolution processes, the growing number of inactive pension funds could leave thousands of workers without the retirement safety net they were promised.