"Pensioners Live in Fear": Only 1 Out of 10 Nigerians Has Access to Pensions

"Pensioners Live in Fear": Only 1 Out of 10 Nigerians Has Access to Pensions

  • MD of Norrenberger Pensions Limited has said that only 10% of Nigerians have access to pensions in the country
  • Hamisu Bala Idris also noted that a large percentage of retirees turn to pensions for survival as the only means of income
  • He, however, highlighted the crucial role pensions play in the lives of retirees

Hamisu Bala Idris, the managing director of Norrenberger Pensions Limited, has exposed the extent of pension reach in Nigeria.

The disclosure follows several reports of pensioners across different parts of the country regularly lamenting the non-payment of their pensions, especially by state governors.

Only 10% of Nigerians have access to pension schemes Photo credit - BBC
Source: UGC

Idris, during a retirement planning seminar organised to empower individuals close to retirement and retirees for a financially-secured future after retirement in Abuja, disclosed that only 10% of Nigerians have access to pension schemes, as reported by Vanguard.

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The NPL boss also stated that 80% of Nigerian retirees depend solely on their monthly pension for survival while highlighting the key importance of financial planning, insurance, lifestyle adjustment, and legal and estate planning.

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He said:

"80 per cent of Nigerian retirees depend solely on their monthly pension for survival, many of whom live in constant fear of a financial crisis based on delayed payments. This highlights the crucial role pension plays in their livelihoods. Moreso, only 10 per cent of the Nigerian population has access to pension schemes."

Job loss continues to accelerate

Global auditing firm KPMG projected Nigeria’s unemployment rate to reach 41% in 2023 compared to 2022’s 37.7%.

The tax advisory firm, in its international global economic outlook report for the first half of 2023, stated that unemployment would continue to be a major challenge in 2023.

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This is a result of limited investment by the private sector, low industrialisation, and slower than required economic growth leading to the inability of the economy to absorb the 4-5 million new entrants into the country's job market every year.

Meanwhile, the report showed that GDP is expected to continue growing at a relatively slow pace of 3% in 2023, owing to the slowdown in economic activity that typically characterise periods of political transition in Nigeria.

As economy bites, Nigerian workers turn to pension before retirement to survive

Meanwhile, Legit.ng reported how Nigerian sacked workers were forced to turn to pensions, requesting 25% of their savings to survive economic hardship.

According to the National Pension Commission (PenCom), 13,126 Nigerian workers who lost their jobs and are still under 50 withdrew N12.56 billion from their pension fund contributions in the first three months of 2023.

The commission also revealed that 12,656 of the sacked workers were from the private sector, 211 were previously employed in the state government, and 259 were former federal government employees.

Source: Legit.ng

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