Dear Government, Don’t Give Up Your Ability to Persuade
The public is not concerned about the idea of better pensions. When faced with public outrage over a decision, governments often find themselves at a crossroads: i. Stick to the decision and try to convince people why it is necessary, hoping logic and goodwill prevail; or ii. Listen to public concerns and consider adjusting the plan, even if it means walking it back. The recent announcement to double pension contributions from 6% to 12% starting January 2025 and to gradually increase them to 20% by 2030 has lit a fire of public debate. The Ministries of Finance, Public Service and Labour, along with the Rwanda Social Security Board (RSSB), did step forward to explain the reasoning behind this move. They highlighted some quite solid goals: increasing pension payouts for retirees whose life expectancy has increased, providing capital to Micro Small and Medium Enterprises in the private sector, and boosting research and innovation funding. The leaders even did compare regional pensi...