All of us will get old one day…..in a few years to come it will be your turn! The current pension manipulations should be stopped by Nigerians now!
I was very happy when the Senate recently made a move to amend the Pensions Act to enable Nigerians to withdraw up to 75 per cent of their cumulative savings. The liberty should even extend to allowing pensioners to withdraw their whole sum if he/she so wish.
The law could also give pensioners the liberty to either withdraw their total sum or give the Pension Administrators the kind of investments they want with their hard-earned funds.
After spending 60 years or 35 years of active service to your nation gathering all types of experiences in finance, administration, etc. PFAs still term you as a novice; you don’t know how to handle your hard-earned entitlements!
I will make a simple illustration here: Mr. A retires at 60 and has N20 million as his savings. He accesses 50 percent of N20 million which equals N10 million. The balance of N10 million is to be spread over 180 months (15 years) and Mr. A earns N55,555 monthly for 15 years and he stops earning anything because he is expected to die at 75.
If Mr. A will be allowed to have his total sum of N20 million, ceteris paribus (all things being equal), he could invest in the Money Market or Government Treasury Bills. Currently and authoritatively, N20 million can fetch up to a maximum of 15 percent per annum on a span of four consecutive 90 days tenor.
What this means is that N20 million gives about N3 million per annum. If you divide N3 million by 365 days and multiply by 30 days gives Mr. A, a monthly earning of N246,575 without depleting his capital of N20 million
Why have we been quiet? Nigerians should wake up from this very deep slumber. The sum given to an average pensioner is not up to the interest the Administrators make on his/her savings. This manipulation/exploitation made PFA among the most lucrative businesses in Nigeria currently.
This is a call to save us all from exploitation and corruption by PFAs.
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