Old Mutual lifts retirement incomes

For thousands of retirees who depend on fixed incomes to meet daily needs, the start of 2026 will come with renewed financial breathing space after Old Mutual Life Assurance Company Malawi announced a 60 percent increase in annuity payments, alongside a once-off bonus equivalent to six months’ annuity payable this December.

The move is expected to ease pressure on retirees grappling with the rising cost of living, helping them better afford essentials such as food, healthcare, and utilities, while restoring confidence that their retirement years can be lived with dignity.

Speaking in an interview, Old Mutual Life Assurance Company Malawi Managing Director Mark Mikwamba said the announcement reflects the company’s long-term commitment to protecting retirees’ financial wellbeing and safeguarding their dignity in retirement.

“This only shows the level of commitment to our promise to provide retirees with a stable, reliable, and lifelong income that continues to grow over time, the 60% increment and the six-month bonus are tangible proof that Old Mutual remains focused on delivering real value to our annuitants, even in challenging economic environments,” said Mikwamba.

Old Mutual’s annuity product is designed to provide guaranteed income for life, ensuring retirees remain financially secure long after leaving active employment, a critical assurance at a time when many pensioners fear outliving their savings.

The product is backed by Old Mutual’s strong investment management capability and a long-standing reputation for trust, offering competitive and consistently improving returns supported by annual increments that aim to preserve purchasing power.

According to Mikwamba, the annuity goes beyond monthly income by offering additional protection through medical and funeral benefits, helping retirees cope with rising healthcare costs and unforeseen expenses that often strain limited budgets.

“Retirement should be a time of peace of mind, not financial anxiety, our annuity product cushions retirees against life’s uncertainties and ensures that their income is protected and dependable throughout their later years. The declared increment directly responds to retirees’ desire for income stability and growth, while the once-off bonus provides immediate relief and recognition for years of service and contribution,” he said.

Between 2015 and 2025, the annuity product recorded an average annual bonus declaration of approximately 23.2 percent, against an average inflation rate of about 19.1 percent over the same period, demonstrating a sustained effort to protect retirees’ purchasing power and support long-term income growth.

The annuity product is available to pension members at retirement and is distributed directly to individuals, as well as through Principal Officers and Corporate Business Development Officers, widening access for Malawians planning for a secure and dignified retirement.

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