Planning is bringing the future into the present so that you can do something about it today is my favorite quote by Alain Lakein. Before the commencement of the contributory pension scheme (CPS) in 2004, it was a tale of regrets for many people after retirement. Today, we have 22 licensed pension fund administrators (PFA), 6 closed pension fund administrators, 4 pension fund custodians, and a meticulous regulator (National Pension Commission) supervising the administration of retirement savings accounts of 9 million Nigerians and N13 trillion as of September 2021. Coverage is universal whether you are working with the government, private sector, or business owner. You can open a retirement savings account today, fund it consistently, track the performance of your fund using your PFA website or mobile app. The fund is invested albeit conservatively to protect and preserve the purchasing power of your money. There are also hardship provisions for job loss, resignation, and incapacitation to cushion the effect of temporary loss of income. At retirement, apart from access to a lump-sum payment, you are also entitled to consistent and periodic payment of at least 50% of the last monthly emolument to power your living expenses during your post-retirement era. When you defer consumption today, you will have something to consume tomorrow.
Why not start a simple pension plan today!
Donald Onuoha
Executive Director & Ag. Managing Director/CEO
Fidelity Pension Managers Limited
1 comment
Well said, so it means that Pension (Planning) is bringing the future into the present so that you can do something about it today… Thanks for the insight Sir.