Pension assets in Nigeria grew consistently between 2013 and Q1 2018 but, at 6%, its ratio to the Gross Domestic Products (GDP) remains one of the lowest amongst certain selected countries. In a similar development, the proportion of the pension assets that was allocated to infrastructure funds increased from 0.03% in 2015 to 0.1% in Q1 2018. Despite the increase, the allocation is lower than the limit of 10% to that asset category.


The high unemployment rate in the country at 18.8% as at Q3 2017 and low pension payment compliance level (particularly from the state government and informal sector) have limited the growth rate of the pension assets. Inadequate infrastructure funds are mainly responsible for the low allocation of the pension fund to the infrastructure funds. We see opportunities for the development of acceptable infrastructure funds in the market that pension assets can invest in.

Further analysis of the asset classes that PFAs held as at March 2018 shows that Federal Government of Nigeria (FGN) Securities accounted for 70.37% of total pension assets. This is followed by ordinary shares and money market instruments at 9.25% and 8.20% respectively.

Looking at the pension fund investment guidelines under the new multi-fund structure which the National Pension Commission (PenCom) will begin implementing on 1 July 2018, more funds may be assigned to the equity investment. The allocation limits for equity investment (ordinary shares) under the Fund I, Fund II and Fund III structures, which are 30%, 25%, and 10% respectively, are all higher than the current allocation of 9.25% in ordinary shares. The expected additional fund
allocation to the equity market may change the current downward trend in the equity market as the market receives more liquidity. Stocks that have strong fundamentals and that pay interim dividend may attract the expected investment from the PFAs.

The implementation of the Micro Pension Plan (MPP) should boost the growth of the pension assets in Nigeria. MPP is an initiative of the PenCom to provide pension services to the self-employed and individuals operating in the informal sector of the Nigerian economy. Also, as the Nigerian economy continues to recover and grow, creating and restoring lost jobs, contributions to the pension funds should increase.

 

SOURCE : https://brandspurng.com/weekly-insights-pension-assets-grow-but-pension-penetration-is-low/

is it true

We don't really trust those people

But normally when my chief asset grows, the penetration grows too.

A vociferous ringtone normally confirms my beliefs.

Happy weekend

most of the States are defaulting

Ehn make e low nah

Fact?

Biochemically what does this insinuate...

Buy Annuity policy with First bank Insurance plc

Open a pension account or register your staff for pension today.

abeg someone should explain to those of us that don't understand these things na

We still have long way to go. The level of awareness is very low. Most self employed individual never knew they can even participate in retirement plans, I've been meeting different responses on daily basis while engaging potential clients. We shall get there hopefully.

For all forms of General Insurance (Car Insurance, Travel Insurance, Marine Insurance etc), Life Covers and retirement plans for self employed individuals.

Employees under the government and private organizations have their retirement plans intact already.

Self Employed individuals can as well key into retirement plans, it will definitely be of great benefits.

Check my signature.

7.94 trillion NAV of which 70% is in tbills nd bonds. Yet bubu still dey borrow more

hadeyolla:
Buy Annuity policy with First bank Insurance plc

Hw will I go abt this....

INTEGRITYA1:
We still have long way to go. The level of awareness is very low. Most self employed individual never knew they can even participate in retirement plans, I've been meeting different responses on daily basis while engaging potential clients. We shall get there hopefully.

For all forms of General Insurance (Car Insurance, Travel Insurance, Marine Insurance etc), Life Covers and retirement plans for self employed individuals.

Employees under the government and private organizations have their retirement plans intact already.

Self Employed individuals can as well key into retirement plans, it will definitely be of great benefits.

Check my signature.

I still fault this pension stuff . Of what use is keeping my money in PFA when naira keeps depreciating . So if I have 3 million naira already in 30 years time that 3 million could just be valued at the present 300 ,000 naira in terms of purchasing power . Wish I could keep it in hard currency , then I'll be safe .

Onisokuso1:


I still fault this pension stuff . Of what use is keeping my money in PFA when naira keeps depreciating . So if I have 3 million naira already in 30 years time that 3 million could just be valued at the present 300 ,000 naira in terms of purchasing power . Wish I could keep it in hard currency , then I'll be safe .

You have a point Sir. I've been seeing people faulting pension scheme for various reasons, but Sir, we could not deny the fact that it still makes lot of sense in preparation for old age.
May we live long enough to enjoy the fruits of our labour, it doesn't really make sense to us during our active years of service, but my interview and my discussion with retirees validate the point that; it makes lot of sense.

Also, having #3m in PFA is not what you contributed at a go, but little and gradual contribution from your monthly salary and from your employer; makes up that sum. Just like little little drops that later forms an ocean.

Who is to blame for this? Preside(-nt)... Security, Banking and Judiciary

Even salaries are not been paid, what hope is there for pension or inheritance? I thought every system involved in this hodgepodge would have been purged by now...

Make we dey look (kashimawo - MKO).

INTEGRITYA1:


You have a point Sir. I've been seeing people faulting pension scheme for various reasons, but Sir, we could not deny the fact that it still makes lot of sense in preparation for old age.
May we live long enough to enjoy the fruits of our labour, it doesn't really make sense to us during our active years of service, but my interview and my discussion with retirees validate the point that; it makes lot of sense.

Also, having #3m in PFA is not what you contributed at a go, but little and gradual contribution from your monthly salary and from your employer; makes up that sum. Just like little little drops that later forms an ocean.

Nice one . Not bad

Onisokuso1:


I still fault this pension stuff . Of what use is keeping my money in PFA when naira keeps depreciating . So if I have 3 million naira already in 30 years time that 3 million could just be valued at the present 300 ,000 naira in terms of purchasing power . Wish I could keep it in hard currency , then I'll be safe .

Pfa's are undergoing lots of reforms. You should agree with me that it is better now than in the years past. I checked my pension account and was impressed with the returns on the investment on my contribution. It almost doubled over the years.

Additionally, they are planning to introduce different investment types which you can chose from. Currently, pension investment is mainly bonds and treasury bills but they are already working on adding other investment arms which you can chose from. It has not yet taken off, but is in the pipeline.

You can google the website of your pfa to see new developments.

mamatwiny:


Pfa's are undergoing lots of reforms. You should agree with me that it is better now than in the years past. I checked my pension account and was impressed with the returns on the investment on my contribution. It almost doubled over the years.

Additionally, they are planning to introduce different investment types which you can chose from. Currently, pension investment is mainly bonds and treasury bills but they are already working on adding other investment arms which you can chose from. It has not yet taken off, but is in the pipeline.

You can google the website of your pfa to see new developments.

Tnx on this

Insatiable appetite to spend people's money without thinking of the consequences is at the root of the proposed change of law to accommodate more investments in equities by PFAs.

By the time they exhaust the proposed 30% they will come up with some charts and graphs showing what percentage of pension is invested in junk stocks in Australia and Trinidad &Tobago, or Hawaii, Tahiti etc.

And when they blow that one away, they will surely show charts on pension investments in ponzi schemes.