The impact of dollarization on pensioners in Zimbabwe: a case study of Old Mutual (2009-2015)

Abstract

This study examined the impact of dollarization on pensioners in Zimbabwe with Old Mutual as a case study. The objectives were to find out how dollarization affected retirees and ways to compensate the aggrieved pensioners. A review of literature on the subject of dollarization was done and the findings provided a good foundation in the understanding of the. Data was collected by way of questionnaires and interviews from a sample size of twenty people randomly selected from a population of fifty two employee benefits personnel. The study revealed that pensioners in Zimbabwe were adversely affected by dollarization in that their contributions were eroded which is evidenced by the very low pension benefits they received on retirement. Recommendations were made to try and rectify these issues. These include approving offshore investments and encouraging more use of hybrid schemes.