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THE FUTURE OF RETIREMENT BENEFITS IN NIGERIA.

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Federal Government Borrowed N8.29trn From N12.9trn Pension Fund.

When retirees say:
*I am comfortable with Programmed Monthly Withdrawal.
*It is only God that can insure our lives.


*Government is not encouraging Retiree Life Annuity.
*Annuity is a fraud.
*Under Programmed Monthly Withdrawal, when I die my children/estate will be paid my RSA balance but under annuity, they get nothing when I die.
*Insurance is not reliable in Nigeria.
*My RSA balance can not be exhausted; so I was told.
*My money is increasing
*I get Monthly Pension Payment increments

A write up on insurance

I took my time to study why retirees talk this way. I realised that:

Majority think they know all about what Programmed Monthly Withdrawal and Retiree Life Annuity are.
Many believe that a devil(PFA) that is well known is better than a newly known angel(Insurance company).
Many do not understand how time, devaluation and inflation can affect their monthly pension payments.
Many have still not realised that since the day they stopped receiving salary, they automatically became business men and women- maximum profit on what their money is invested on can not be dealt with in any lesser measure.

I need all retirees to know that: 98% of retirees under the Contributory Pension Scheme did not saved enough for retirement. They become reduced to spending whatever they are given at retirement; which is usually less than 50% of their last salary.
Retirement should not make you totally dependent on your children. As matter of fact, when they give you, accept it as an addition. Gone are the days of stocking money under the mattresses.
They must consciously decide to plan for their post- retirement life and dependable income in the future.
The guaranteed payment period of 10 years is so short and can become so long for those suffering from some ailments.
They are supposed to get an 'affordable' term or whole life Insurance from their lumpsum, that is, if they do not have one before retirement.

Government borrowing is not encouraging the matter

Implications:
Contributors under Programme Monthly Withdrawal may not get as much profit boost on their contribution. Reason why one who retirees with N30million naira has profit of N4million on a contribution over 35 years.

TIME & RETURN EFFECTS:
How far and how well can 4.61trn balance take the number of retirees and the active ones in service under CPS in Nigeria? Ability to Investing the funds now is abundantly lowered.

RISK OF TIME & INVESTMENT
Active ones in service will get a lesser value at retirement because the supposed growth can not be achieved. This means that one who got his/her bond this year will get lesser compared to the other who retired earlier with the same level and steps.

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