Pension in Nigeria

Introduction

To start with, what is Pension?

 According to Cambridge English Dictionary, Pension is ”an amount of money paid regularly by the government or a private company to a person who does not work anymore because they are too old or have become ill.”

According to Oxford English Dictionary, Pension is “a regular payment made during a person’s retirement from an investment fund to which that person or their employer has contributed during their working life.” If you want to get the latest Nigeria Pension News, always orientalnewsng.com

This post will give insight of what Pension is all about, the major challenges facing the stakeholders in the pension industry and the possible and reliable solution to the challenges from a reasonable perspective.

Quick Review of Pension in Nigeria

Majority of Nigerian workers are in the know of what Pension is all about, but some workers are still ignorant about it.

There are lots of Nigerian workers that are eager to know the essentials of a Pension Scheme and how the funds can be withdrawn at retirement without stress.

Pension scheme is a retirement account where employers and employees make monthly contributions. In Nigeria, employers contributed 10% of the salary and the employee contributes 8% which is a defined contribution plan.

Pension Contributory Plan is majorly designed to make employees derive the advantage of adequately being paid their pension as it is due upon retirement. This type of fund is maintained by a Pension body. Visit Orientalnews Nigeria for the latest PTAD News

According to National Pension Commission, every employee or contributor under the new pension scheme is expected to open RSA in his or her name with a PFA of his or her choice into which all his/her contributions and returns on investment are paid.

Note:

RSA – Retirement Savings Account

PSA – Pension Savings Account

It is very important to know that contributions should be maintained and administered by Professional Fund Administrators and held in custody by licensed Pension Fund Custodians.