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Why You Should Start Your Pension Early by Kanyeti(m): 3:12pm On Nov 24, 2016
WHY YOU SHOULD START PENSION EARLY?
There is a general misconception that retirement planning means paying money into a pension which might be the reason why some people start pension planning at 50 years. However, pension planning should be explored as a means of financial security. This means that pensions can be a way of saving for the rainy day or what some people will call investment. Pensions nowadays are not just done to have a comfortable retirement bonus. Pension managers now take advice from pensioners on how to invest their money risky or not risky. Today’s graduates face a working life of around 50 years which is a short time before retirement. Retirement is always a reduction in your income but the time one starts his pension could mean sufficient money to cater for their needs from feeding to health care and the rest. Aiden Mcloughlin of The Independent Trustee Company once said “We have a poor history of starting a pension early….with most people only rushing to start one once the “finish line” is actually in sight”. A Pension Savings Model was run by The Independent Trustee Company which looked at a person who only saved for their pension for 10 years from 25 to 35. If this person left the fund to grow with no further contribution to age 65, the benefit would be larger at 65 than if they had saved from 30 years to 65 years. According to the Director General of The National Pension Commission, Chinelo Anohu-Amazu, 7.01 million workers are registered under the scheme in Nigeria. However, this amounts to just 7.45 percent of the total labour force in the country.
So why do you need to start your pension early?
• INCREASED INCOME AFTER RETIREMENT
Tom Mcphail of Advisers Hargreaves Lansdown said “The important thing is to start saving as soon as you possibly can. Even a modest monthly saving now can make a real difference to your financial freedom in the future. Delay five years and you could slash your eventual payout by as much as 30%”. Starting one’s pension early could increases one’s payout upon retirement. It ensures that even upon retirement, you can still afford the best of feeding, healthcare and so on. The importance of starting early can also be seen in Mcphail’s statement when he said “Even if you don’t want to commit to a pension early on, at least start saving, you can always move the money across to a pension later on.
• INCREASED COST OF LIVING
It is no news that there has been an highly increased cost of living in the country. An early pension plan will provide you with enough money to still take care of yourself if at the time of retirement, cost of living has gone up. According to the National Bureau of Statistics, consumer price index rose just between August and September of this year from 17.6 percent to 17.9 percent. This shows that a high sum of money is needed for retirees who started their pension about 40 years back to have a comfortable life after retirement and starting pension early might just make the difference.
• ALLOWS FOR SAVING AND INVESTMENTS
Investing or saving part of one’s salary is the cornerstone of building retirement plans. If one can start early in life, you will significantly increase the odds of reaching financial independence at a younger age. What better way to save money than a pension plan considering also that payments into a pension qualifies one for tax relief. Pension managers have increasingly been give free hand to pensioners on ways to invest their pension fund to help increase it at retirement.
Despite the fact that a meaningful fund is almost impossible for a young person at the start of their career, the figures show that it is the early payments that could make the difference. It is therefore important for young people to start pension plans in earnest. I would like to end with Mr Mcphail’s statement that even if young people don’t want to commit to a pension early on, at least they should start saving as they can always move the money into a pension later on.
Written by:
OLAKANYE OLUWATOBI

3 Likes

Re: Why You Should Start Your Pension Early by jamadi84: 6:55am On Nov 25, 2016
Start From your first day in office
Re: Why You Should Start Your Pension Early by XploraBen(m): 6:58am On Nov 25, 2016
Okay.



In other news,today is my birthday.
Show me some likes. cheesykiss

#Nov25thborn

23 Likes 1 Share

Re: Why You Should Start Your Pension Early by drakespearz(m): 6:59am On Nov 25, 2016
Nice one
Re: Why You Should Start Your Pension Early by azlad2010(m): 7:04am On Nov 25, 2016
ok ooo,may god be with us.
Re: Why You Should Start Your Pension Early by Lord3point5: 7:05am On Nov 25, 2016
Nice
Re: Why You Should Start Your Pension Early by stevocracy88(m): 7:06am On Nov 25, 2016
Now that you have said it....i will start saving....i usually just beer up my savings Sha.
.
.
.
.
.
.
.
.
That's how we roll
Re: Why You Should Start Your Pension Early by Yewandequeen(f): 7:10am On Nov 25, 2016
Cool
Re: Why You Should Start Your Pension Early by jhydebaba(m): 7:10am On Nov 25, 2016
Any reliable pension scheme in Nigeria
Re: Why You Should Start Your Pension Early by Celdanstar: 7:13am On Nov 25, 2016
This is a good piece of information for those who do not want to spend their old age in penury. But Nigerian workers detest pension plans because their emoluments are barely enough to cater for their needs let alone saving for old age.

2 Likes 1 Share

Re: Why You Should Start Your Pension Early by HopeAlive14(m): 7:20am On Nov 25, 2016
XploraBen:
Okay.



In other news,today is my birthday.
Show me some likes. cheesykiss

#Nov25thborn

Happy Birthday!

1 Like

Re: Why You Should Start Your Pension Early by buchilino(m): 7:25am On Nov 25, 2016
Celdanstar:
This is a good piece of information for those who do not want to spend their old age in penury. But Nigerian workers detest pension plans because their emoluments are barely enough to cater for their needs let alone saving for old age.

U READ WAT WAS ON MY MIND. AS A PUBLIC SERVANT BASED IN LAGOS, I PAY HOUSE RENT OF 300k ANNUALLY. LET ME NOT EVEN ENTER SCHOOL FEES, FEEDING MY FAMILY, HEALTH, TRANSPORT ETC. YET D SALARY IS NOT EVEN UP TO 80k. WAT DOES ONE EXPECT ME TO SAVE. IT'S ALWAYS EASY 4 PPLE 2 CRITICIZE, UNTIL THEY FIND THEMSELVES IN D SAME SITUATIONS.

5 Likes

Re: Why You Should Start Your Pension Early by HopeAlive14(m): 7:27am On Nov 25, 2016
Nice post, OP.

Commitment and steadfastness should be part of the habit needed to save towards the future.
Re: Why You Should Start Your Pension Early by Bisjosh(f): 7:30am On Nov 25, 2016
My company ensured that we all have pension account angry

So a certain amount is deducted from our salary every month smiley

I use IBTCPension

1 Like

Re: Why You Should Start Your Pension Early by hopefulLandlord: 7:38am On Nov 25, 2016
Pension makes little to NO sense in a country like ours

first, inflation eats at pension badly; so a pension you saved for 30 years or more would be worth far less when it's time to start withdrawing it and you can't even withdraw everything at once, they'll be giving you bit by bit while charging you fees and using every trick in the book to metamorphically swindle you

secondly, Pension managers HATE it when a client of theirs is due to start receiving his/her money, they'll start frustrating such a person by asking for documents here and there hoping you'll die before getting all those documents, its even worse when the owner of the pension is dead and its the family members/next of kin that wants to start taking what's Thiers

6 Likes

Re: Why You Should Start Your Pension Early by Smooth278(m): 7:47am On Nov 25, 2016
More money for the politicians to chop and clean mouth... After all a 32billion naira pension scam was rewarded (punished) with 600k fine... So why will people keep their money there again except if they can be assured of minimal contact with politicians ...
Re: Why You Should Start Your Pension Early by Nobody: 7:48am On Nov 25, 2016
hopefulLandlord:
Pension makes little to NO sense in a country like ours

first, inflation eats at pension badly; so a pension you saved for 30 years or more would be worth far less when it's time to start withdrawing it and you can't even withdraw everything at once, they'll be giving you bit by bit while charging you fees and using every trick in the book to metamorphically swindle you

secondly, Pension managers HATE it when a client of theirs is due to start receiving his/her money, they'll start frustrating such a person by asking for documents here and there hoping you'll die before getting all those documents, its even worse when the owner of the pension is dead and its the family members/next of kin that wants to start taking what's Thiers


Left to me I'd not get involved in this our pension schemes.

It doesn't make sense knowing that the money would not have any value at the end of the day,
Re: Why You Should Start Your Pension Early by mamatayour(f): 7:48am On Nov 25, 2016
God help us.
Re: Why You Should Start Your Pension Early by ekmike(m): 7:55am On Nov 25, 2016
jhydebaba:
Any reliable pension scheme in Nigeria
There are reliable insurance company that can provide you with Annuity plans but note that you cannot access the funds until you are 50+
Re: Why You Should Start Your Pension Early by lawrence9999(m): 7:58am On Nov 25, 2016
hopefulLandlord:
Pension makes little to NO sense in a country like ours

first, inflation eats at pension badly; so a pension you saved for 30 years or more would be worth far less when it's time to start withdrawing it and you can't even withdraw everything at once, they'll be giving you bit by bit while charging you fees and using every trick in the book to metamorphically swindle you

secondly, Pension managers HATE it when a client of theirs is due to start receiving his/her money, they'll start frustrating such a person by asking for documents here and there hoping you'll die before getting all those documents, its even worse when the owner of the pension is dead and its the family members/next of kin that wants to start taking what's Thiers

Pension system doesn't work in a country like Nigeria. Pension scheme is a scam.
Re: Why You Should Start Your Pension Early by ekmike(m): 8:00am On Nov 25, 2016
hopefulLandlord:
Pension makes little to NO sense in a country like ours

first, inflation eats at pension badly; so a pension you saved for 30 years or more would be worth far less when it's time to start withdrawing it
You are right here, I know insurance companies that consider this and have included inflation rates in their policy to hedge against this risk. But you know that means you will be making a higher contribution.
Re: Why You Should Start Your Pension Early by micklplus(m): 8:02am On Nov 25, 2016
hopefulLandlord:
Pension makes little to NO sense in a country like ours

first, inflation eats at pension badly; so a pension you saved for 30 years or more would be worth far less when it's time to start withdrawing it and you can't even withdraw everything at once, they'll be giving you bit by bit while charging you fees and using every trick in the book to metamorphically swindle you

secondly, Pension managers HATE it when a client of theirs is due to start receiving his/her money, they'll start frustrating such a person by asking for documents here and there hoping you'll die before getting all those documents, its even worse when the owner of the pension is dead and its the family members/next of kin that wants to start taking what's Thiers

Don't be ambiguous . say what you know and say what you are sure about.
Drawing from pension account has procedures. it isn't like a regular bank account. Every withdrawal from the pension account MUST be approved by the National Pension Commission which could be delayed and theres nothing PFAs can do if approval hasn't come from PENCOM.

Before withdrawal, there are requirements and until those requirements are met, there IS NOTHING PFAs can do

You might be right on inflation though but then, people drawing their monthly pension payment because of retirement still have higher balances inspite of their monthly payment, why do you think its like that?

PFAs invest the pension remittance with them in viable business that would yield superb returns. Inflation rate is always considered and that is why there is a tight regulations to ensure investment of pension funds are done with professionalism and high profit margin in mind so as to ensure returns and infact, higher returns that would have taken care of the inflation rate.

do a margin of fund price from 3 years ago and compare to fund price of today and you will see how good the funds have grown.

Thanks

2 Likes

Re: Why You Should Start Your Pension Early by lawrence9999(m): 8:03am On Nov 25, 2016
Kanyeti:
WHY YOU SHOULD START PENSION EARLY?
There is a general misconception that retirement planning means paying money into a pension which might be the reason why some people start pension planning at 50 years. However, pension planning should be explored as a means of financial security. This means that pensions can be a way of saving for the rainy day or what some people will call investment. Pensions nowadays are not just done to have a comfortable retirement bonus. Pension managers now take advice from pensioners on how to invest their money risky or not risky. Today’s graduates face a working life of around 50 years which is a short time before retirement. Retirement is always a reduction in your income but the time one starts his pension could mean sufficient money to cater for their needs from feeding to health care and the rest. Aiden Mcloughlin of The Independent Trustee Company once said “We have a poor history of starting a pension early….with most people only rushing to start one once the “finish line” is actually in sight”. A Pension Savings Model was run by The Independent Trustee Company which looked at a person who only saved for their pension for 10 years from 25 to 35. If this person left the fund to grow with no further contribution to age 65, the benefit would be larger at 65 than if they had saved from 30 years to 65 years. According to the Director General of The National Pension Commission, Chinelo Anohu-Amazu, 7.01 million workers are registered under the scheme in Nigeria. However, this amounts to just 7.45 percent of the total labour force in the country.
So why do you need to start your pension early?
• INCREASED INCOME AFTER RETIREMENT
Tom Mcphail of Advisers Hargreaves Lansdown said “The important thing is to start saving as soon as you possibly can. Even a modest monthly saving now can make a real difference to your financial freedom in the future. Delay five years and you could slash your eventual payout by as much as 30%”. Starting one’s pension early could increases one’s payout upon retirement. It ensures that even upon retirement, you can still afford the best of feeding, healthcare and so on. The importance of starting early can also be seen in Mcphail’s statement when he said “Even if you don’t want to commit to a pension early on, at least start saving, you can always move the money across to a pension later on.
• INCREASED COST OF LIVING
It is no news that there has been an highly increased cost of living in the country. An early pension plan will provide you with enough money to still take care of yourself if at the time of retirement, cost of living has gone up. According to the National Bureau of Statistics, consumer price index rose just between August and September of this year from 17.6 percent to 17.9 percent. This shows that a high sum of money is needed for retirees who started their pension about 40 years back to have a comfortable life after retirement and starting pension early might just make the difference.
• ALLOWS FOR SAVING AND INVESTMENTS
Investing or saving part of one’s salary is the cornerstone of building retirement plans. If one can start early in life, you will significantly increase the odds of reaching financial independence at a younger age. What better way to save money than a pension plan considering also that payments into a pension qualifies one for tax relief. Pension managers have increasingly been give free hand to pensioners on ways to invest their pension fund to help increase it at retirement.
Despite the fact that a meaningful fund is almost impossible for a young person at the start of their career, the figures show that it is the early payments that could make the difference. It is therefore important for young people to start pension plans in earnest. I would like to end with Mr Mcphail’s statement that even if young people don’t want to commit to a pension early on, at least they should start saving as they can always move the money into a pension later on.
Written by:
OLAKANYE OLUWATOBI

Pension system in a country like Nigeria is scam. Until they look into the pension scheme in this country, people have already lost interest in them.
Re: Why You Should Start Your Pension Early by micklplus(m): 8:04am On Nov 25, 2016
lawrence9999:


Pension system doesn't work in a country like Nigeria. Pension scheme is a scam.

Pension is not a scam.

The reformed Pension Act 2014 has simplified and structured pension business in Nigeria. If you don't know, please ask questions and i am sure clarifications would be given. Thanks

1 Like

Re: Why You Should Start Your Pension Early by bsideboii(m): 8:07am On Nov 25, 2016
buchilino:


U READ WAT WAS ON MY MIND. AS A PUBLIC SERVANT BASED IN LAGOS, I PAY HOUSE RENT OF 300k ANNUALLY. LET ME NOT EVEN ENTER SCHOOL FEES, FEEDING MY FAMILY, HEALTH, TRANSPORT ETC. YET D SALARY IS NOT EVEN UP TO 80k. WAT DOES ONE EXPECT ME TO SAVE. IT'S ALWAYS EASY 4 PPLE 2 CRITICIZE, UNTIL THEY FIND THEMSELVES IN D SAME SITUATIONS.
No one is criticizing anybody here. OP suggest we all imbibe a savings culture which many Nigerians lack,as it will in the long run save pple from money mess.More money IJN.
Re: Why You Should Start Your Pension Early by buchilino(m): 8:14am On Nov 25, 2016
bsideboii:
No one is criticizing anybody here. OP suggest we all imbibe a savings culture which many Nigerians lack,as it will in the long run save pple from money mess.More money IJN.

U DON'T GET IT. THERE IS NOTHING 2 SAVE. NO REASONABLE PARENT WOULDN'T LIKE 2 SAVE. BUT D REALITY IS DAT CURRENTLY IT'S ALMOST IMPOSSIBLE.

1 Like

Re: Why You Should Start Your Pension Early by micklplus(m): 8:15am On Nov 25, 2016
buchilino:


U READ WAT WAS ON MY MIND. AS A PUBLIC SERVANT BASED IN LAGOS, I PAY HOUSE RENT OF 300k ANNUALLY. LET ME NOT EVEN ENTER SCHOOL FEES, FEEDING MY FAMILY, HEALTH, TRANSPORT ETC. YET D SALARY IS NOT EVEN UP TO 80k. WAT DOES ONE EXPECT ME TO SAVE. IT'S ALWAYS EASY 4 PPLE 2 CRITICIZE, UNTIL THEY FIND THEMSELVES IN D SAME SITUATIONS.

I understand your pain but then, what is required of you is 8% of your Transport, Basic and Housing. The other 10% is to be paid on your behalf by your employer to make a total of 18%

Pension scheme is for the future and future must be taken care of from today.
Re: Why You Should Start Your Pension Early by micklplus(m): 8:16am On Nov 25, 2016
buchilino:


U DON'T GET IT. THERE IS NOTHING 2 SAVE. NO REASONABLE PARENT WOULDN'T LIKE 2 SAVE. BUT D REALITY IS DAT CURRENTLY IT'S ALMOST IMPOSSIBLE.

The 8% from you is deducted at source before you are handed your salary. Except if your organisation hasnt bought into the pension scheme, YES?

1 Like

Re: Why You Should Start Your Pension Early by buchilino(m): 8:17am On Nov 25, 2016
micklplus:


I understand your pain but then, what is required of you is 8% of your Transport, Basic and Housing. The other 10% is to be paid on your behalf by your employer to make a total of 18%

Pension scheme is for the future and future must be taken care of from today.
I WILL TRY UR ADVICE BUT HONESTLY IT'S VERY FRUSTRATING.
Re: Why You Should Start Your Pension Early by buchilino(m): 8:22am On Nov 25, 2016
micklplus:


The 8% from you is deducted at source before you are handed your salary. Except if your organisation hasnt bought into the pension scheme, YES?

MY ORGANIZATION IS INVOLVED IN D PENSION SYSTEM BUT DAT 2 LIKE PASSING HELL. MANY OF MY COLLEAGUES DAT RETRIED LAST TWO YRS HAVEN'T COLLECTED A SINGLE PENNY FROM DER PENSION ADMINISTRATOR. THEY KEEP ON GIVING EXCUSE OR OTHER. MANY HAVE STARTED BEGGING TO SURVIVE.

1 Like

Re: Why You Should Start Your Pension Early by ALAYORMII: 8:33am On Nov 25, 2016
Contact Mii for Ur pension plans

We have series of plans to help you save money at Mutual Benefits Life Assurance Ltd.
Re: Why You Should Start Your Pension Early by jossy26: 8:55am On Nov 25, 2016
@buchilino, please can you state the pension plan your colleagues are using and what excuse is the pfa giving for not remitting their funds

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