Interview: Business Expert Josef Sheehama Backs Pension Access to Ease Government worker Debt

Business expert Josef Sheehama has highlighted the urgent need for government employees to access their pension funds to settle mounting debt, citing the pressures of the current economic climate and rising financial distress among public servants. Speaking in an interview, Sheehama noted that excessive debt has been linked to mental health challenges and, in some cases, even suicides.

Sheehama expressed support for government initiatives such as the pension-backed home loan scheme, describing them as innovative tools for financing housing, renovations, or land purchases. However, he warned that such schemes may not fully address affordability concerns and could put retirement savings at risk if loans are defaulted on. “I am more comfortable with a direct pension payout than a pension-backed home loan, as the latter uses retirement savings as collateral, which can have tax implications and long-term consequences,” he explained.

The expert suggested a system where the government pays creditors directly and allows employees to retain a portion of their funds, ensuring they are not left empty-handed after settling debts. Sheehama added that partial pension withdrawals could stimulate the economy by increasing citizens’ financial freedom while also alleviating stress and other mental health issues associated with debt.

He also emphasized the importance of careful monitoring to ensure withdrawals do not compromise the sustainability of pension schemes or reduce contributors’ retirement savings. “Allowing employees to access a portion of their pension is a brilliant move that balances immediate financial relief with long-term retirement security,” Sheehama concluded.

This perspective comes as many Namibians continue to struggle with high debt levels amidst rising living costs, highlighting the need for pragmatic and sustainable solutions within the social security system.

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