FNB Eswatini has launched “Retirees Savings,” a new financial product designed to convert pension lump sums into a predictable monthly income while preserving capital.
The product, officially launched on Tuesday at Happy Valley Hotel, offers retirees an annual interest rate of 7.25%, paid monthly, with a minimum investment threshold of E10,000 and a guaranteed return of capital after a fixed three-year term.
Speaking at the launch, FNB Eswatini Executive Head of Retail, Dr Mncedzi Ngomane, said the product responds directly to the evolving financial needs of emaSwati and reinforces the bank’s long-term commitment to supporting customers throughout their life journey.
“A year ago, we marked our 30th anniversary with a promise to continue delivering solutions that are relevant to emaSwati today and into the future. The FNB Retirees Savings is a natural extension of that promise, ensuring that we walk with our customers not only from birth and employment, but into retirement,” said Ngomane.
He stressed that retirement should not be viewed as an end, but rather a critical transition that requires financial structure, dignity, and support.
“For many, retirement comes with uncertainty and concerns about financial security. As a business, we see retirees as a vital part of society. By offering this product, we aim to provide peace of mind through guaranteed monthly income and protection of lifetime savings,” he said.
Under the product structure, retirees invest a lump sum, typically from pension payouts, and receive monthly interest-based income, while the initial capital remains intact and is paid out at maturity. However, funds are locked in for three years, with early withdrawals attracting penalties of up to 5%.
FNB Head of Transact and Liabilities, Nosizwe Sigwane, explained that the solution is designed to simplify retirement planning by eliminating the complexities often associated with investment management.
“This product gives retirees predictable income, peace of mind through capital protection, and a simple, no-management approach to handling their savings,” she said.
The bank is also positioning the product as a strategic tool for employers, particularly human resource practitioners, to support employees approaching retirement. FNB has committed to rolling out workplace engagements and financial education sessions to help workers better prepare for the transition.
Closing the event, FNB Eswatini Sales Manager, Ronelle Rennie, underscored the importance of structured retirement planning, warning that many retirees struggle after receiving lump sum payouts without clear financial strategies.
“Retirement is one of the most important financial transitions in a person’s life. Without proper guidance, even disciplined savers can deplete their funds too quickly, leading to financial stress later in life,” Rennie said.
She added that employers have a critical role to play in ensuring their staff transition into retirement with confidence, noting that how organisations support employees at this stage reflects their long-term commitment to staff wellbeing.
Through the new retirees savings offering, FNB Eswatini aims to bridge the gap between employment income and retirement sustainability, positioning financial security in old age as a shared responsibility between financial institutions, employers, and individuals.