Windhoek: The Government has suspended a proposed regulation on the preservation of retirement savings following widespread public concern, Minister of Finance Ericah Shafudah announced on Wednesday at the official launch of the Financial Institutions and Markets Act (FIMA). According to Namibia Press Agency, the proposed Regulation RF.R.5.10, aimed at governing the preservation of retirement savings under the new Act, has been placed on hold after consultations held across all 14 regions drew strong opposition from members of the public. "The concerns raised by the Namibian people regarding Regulation RF.R.5.10 have been taken to heart and the regulation has been placed on hold," Shafudah said. She stated that the consultation process brought together organised labour, the Ministry of Finance, the Bank of Namibia, Namibia Financial Institutions Supervisory Authority (Namfisa), and the pension industry in a structured national engagement. Shafudah emphasized that the consultations were not superficial but r ather a deliberate attempt to include all voices in the discussion. The Minister assured the public that existing retirement benefit rules remain unchanged. The one-third cash lump-sum entitlement for pension, retirement annuity, and preservation funds, as well as the 100 per cent lump-sum entitlement for provident funds under the Income Tax Act of 1981, will continue to apply. Many Namibians had expressed concern that the proposed regulation did not adequately reflect household circumstances or the social compact between workers, employers, and the State. The Government responded to these concerns by describing the consultation process as deliberate and inclusive. Shafudah explained that FIMA, which came into operation on 01 May 2026, replaces outdated and fragmented legislation with a single modern legal framework for the non-banking financial sector, built on the pillars of financial stability, financial inclusion, and consumer protection. "A strong and trusted financial system is not a luxury in Namibi a; it is a foundation for sustainable development," she remarked.