Dr. Ngirente addressed the issue on December 6, 2024, during a press briefing on the country's current state of affairs.
Recently, the government announced a decision to raise pension contributions.
Starting January 2025, pension contributions will rise to 12%, with employees and employers each contributing 6%. This marks an increase from the current combined rate of 6%, where both parties contribute 3%. By 2027, contributions will incrementally reach 20%, achieved through annual 2% increases until 2030.
The Prime Minister attributed the reform to Rwanda's increasing life expectancy, now averaging 69 years and steadily rising. He noted that this progress means retirees could live as many years in retirement as they spent working, necessitating financial preparedness.
'It is commendable that Rwandans are living longer. However, we must ensure they do not live their later years in hardship,' Dr. Ngirente remarked. 'A Rwandan deserves to live a long life and live it well.'
He stressed that the Rwanda Social Security Board (RSSB) manages pension funds to secure citizens' futures, describing contributions as essential savings.
'When people face challenging times, we return their savings,' Dr. Ngirente explained adding that this reform ensures that retirees can maintain a standard of living similar to when they were employed.
The Prime Minister emphasized that these changes are intended to benefit Rwandans by ensuring that retirees can afford essential needs such as housing and education for their children.
Addressing concerns from those who feel the adjustments may be abrupt or challenging for some employers to implement immediately, Dr. Ngirente assured that the government would support them in the transition.
'For companies that can implement the changes starting January, they should proceed. For those facing difficulties, we will require them to declare their situation transparently. Based on their requests, we will provide guidance and support,' he said.
'We are a government that accompanies its citizens. We will not abandon institutions that may struggle to meet the new requirements in January. There will be no crises. We have also engaged employers, and no employer wants to see an employee who worked for 20 or 30 years unable to afford basic needs like soap,' he added.
The Prime Minister urged all Rwandans to support the decision, emphasizing that it was made with their future well-being in mind.
IGIHE
