Experts are advocating Additional Voluntary Contribution(AVC) and Endowment policy for workers so that they live a good life at retirement.
The experts, who spoke at the Maiden edition of the 2024 Inspenonline Retirement Summit in GRA, Ikeja, Lagos, recently, noted that, with the current state of the economy, pension contributions alone cannot guarantee better life in retirement, noting that, those who solemnly rely on their contribution during retirement will live a miserable life.
To this end, they enjoined workers to always set aside fund from their salaries for AVC or purchase an Endowment Policy in insurance companies to augment whatever that may be coming from CPS monthly stipend. This is critical, especially, for federal government workers whose pension payment may be delayed because of delayed accrued rights from government at retirement.
On her path, the former director general, Lagos State Pension Commission (LASPEC), Mrs Folashade Onanuga, clamoured that employers of labour must, as a matter of urgency, inculcate retirement trainings for each employee,such that,he or she can be financially independent in retirement.
While clamouring for ADC as alternative funding option for would-be retirees, he urged retirees as well as workers to cut down their expenses by focusing mainly on what they need and not what they want.
“You need financial discipline at retirement because your pension contributions alone cannot give you comfort in retirement. Don’t live above your limit, don’t live within your limit, but live below your limit, such that, you can cope with financial pressure that comes with retirement,” she advised.
The former executive director, Leadway Assurance Company Limited, Ms Adetola Adegbayi, who is now a retired said, inflation rate is growing at 22 per cent and that, ‘if you have any investment below this, you are going to retire poor. Hence, you can buy a Financial Endowment policy with insurance companies.’
Urging Nigerians to strike away the mentality of being dependent on an employer for survival, she added that, “we always look for who to pay us. Why not you pay someone to circulate the capital? Circulate your capital within your rural communities by engaging in projects that can develop our rural areas. Do businesses and employ people, contribute to the wellbeing of the people within your rural community and by that, you are circulating wealth.”
She urged people to pay tax such that they can always query when those tax payment aren’t working for taxpayers, stating that, this is what advanced countries does.