Expert Charges Nigerians On Early Retirement Planning

Ebere Nwoji Pension and retirement planning expert, Mrs Rahinatu Omolamai, has advised Nigerians to embrace early retirement planning as a critical tool for combating old-age poverty. Omolamai, who is the head of Personal Pension Plan at Leadway Pensure PFA, gave the advice at a one day training programme organised by Leadway Group for members of National Association of Pension and Insurance Editors (NAIPE) in Lagos, warned that rising living costs, unstable incomes and changing work patterns have made financial preparedness more urgent than ever. In a paper titled: “Building Financial Wellness: The Role of Retirement Planning,” Omolamai said retirement planning should no longer be viewed as an option reserved for salaried workers but as a necessity for everyone who earns an income. According to her, the current economic realities facing Nigerians including persistent inflation, declining purchasing power and unpredictable income streams, have redefined financial wellness and underscored the need for long-term financial planning. She stressed that retirement planning was relevant to salaried employees, self-employed professionals, entrepreneurs, freelancers, business owners, sports personalities and Nigerians earning foreign currency, noting that each category has pension products tailored to its needs. She explained that salaried workers could strengthen their retirement security through additional voluntary contributions under the Personal Pension Plan (PPP), while self-employed individuals could make flexible contributions based on their income. According to her, eligible foreign currency earners can diversify their retirement savings through Fund VII, which allows pension contributions in foreign currency. The pension expert also dispelled the widespread misconception that pension savings were inaccessible until retirement, explaining that contributors’ savings were divided into retirement and contingent portions, allowing eligible access to part of their funds while safeguarding their long-term retirement benefits.