Experts Advocate Alternative Options For Retirement Plan, Amid Soaring Inflation

From left: National Chairman, Forum of Pension Desk Officers, Nze Peter Nze; Managing Director Sanlam Nigeria, Tunde Mimiko; Managing Director Motodols Consults/former Director General, Lagos State Pension Commission, Mrs. Folashade Onanuga; Managing Director Universal Insurance Plc, Benedict Ujoatuonu; Past President Chartered Insurance Institute of Nigeria (CIIN)/former Managing Director Sterling Assurance Limited, Fatai Lawal; Founder & Managing Director, ZER Consulting Africa, Adeolu Adewumi-Zer; Former Managing Director Sanlam Nigeria, Val Ojumah; Founder, Mutual Aid Specialists, Adetola Adegbayi; President Chartered Insurance Institute of Nigeria Edwin Igbiti and former Executive Director, Unic Insurance, Tom Ogboi at the Inspenonline Retirement Summit in Lagos on Thursday, April 25, 2024.

As surging inflation continued to erode value of commodities and services, experts have implored workers to diversify their retirement plans to have fun-filled retirement.

The experts, who spoke at the Maiden edition of the 2024 Inspenonline Retirement Summit at the weekend in Lagos themed “Promoting Retirement Without Tears Through Insurance and Pension,” noted that with the current state of the economy, pension contributions alone cannot guarantee better life in retirement that those who solemnly rely on their contributions alone for retirement, might end up living a miserable life. 

To this end, they enjoined workers to always set aside fund from their salaries for Additional Voluntary Contribution (AVC) or purchase an Endowment Policy in insurance companies to augment whatever that may be coming from Contributory Pension Scheme (CPS) monthly stipend. 

While they agreed that workers should negotiate retirement plans with their employers the same way they negotiate their salaries, they advised everyone to search for their purpose in life which is the passion they have and start planning towards it at an earlier stage of their working life, such that at retirement when they want to make it a full time business, the transition would be seamless.

The keynote speaker, who is the founder & managing director of ZER Consulting Africa Ltd, Ms. Adeolu Adewumi-Zer, urged workers to identify their passion earlier in life and invest in it at retirement, saying, this would amount to investment meets opportunities. 

The former managing director/CEO of Allianz Insurance said that most people who entered into retirement unprepared was because they lacked financial planning, noting that, each worker shouud have a financial planner who will guide them on the best investment options and help them in the management of their wealth.  

She said “most people who entered into retirement unprepared was because they lacked financial planning, it is important that each worker should have a financial planner who will guide them on the best investment options and help them in the management of their wealth.  

According to her, “retirement isn’t an ending, it’s a magnificent new beginning – a chance to unleash your resilience and craft a fulfilling future that transcends the confines of your workplace. Don’t be passive participants in your own retirement! Raise your voice, ask questions, and engage experts, network to create a personalised retirement plan that ignites your passions and fuels your dreams. Together, we can redefine retirement, making it a time not just for financial security, but also for purpose, passion, and lifelong exploration.

“Financial security is crucial, of course. But true fulfillment comes from a life rich in purpose, connection, and continuous growth. Embrace personal transformation as you plan for the future. Explore your passions, reconnect with loved ones, and consider ways to contribute your skills and knowledge to the world. Retire from your job, but never retire from your passions; the greatest adventures await you in this next chapter.”

On her path, the former director general, Lagos State Pension Commission (LASPEC), Mrs Folashade Onanuga, clamoured that employers of labour must, as a matter of urgency, inculcate retirement trainings for each employee,such that,he or she can be financially independent in retirement. 

While clamouring for Additional Pension Contributions as alternative funding option for would-be retirees, he urged retirees as well as workers to cut down their expenses by focusing mainly on what they need and not what they want.

“You need financial discipline at retirement because your pension contributions alone cannot give you comfort in retirement. Don’t live above your limit, don’t live within your limit, but live below your limit, such that, you can cope with financial pressure that comes with retirement,” she advised.

Similarly, the managing director/CEO, Universal Insurance Plc, Mr. Ben Ujuatuonu, said that those who start work earlier in life has a lot of opportunities to plan retirement early, adding that, five years to retirement, one should have concluded and finalised on what business to do at retirement.

Moreover, the managing director/CEO, Sanlam Life Insurance, Mr. Tunde Mimiko, urged workers to envision the life they want to live in retirement and should avoid a situation whereby their current life is defined by career alone, adding that “pursue your passion as well, build a network of long lasting friends as they will be instrumental in your retirement life, don’t let your life be defined by your current position, it’s transient and derive fulfillment in whatever you decide to do.

“You need a financial plan to pursue your dream future or life in retirement, don’t let your children be your insurance, sow your own financial seed, be disciplined, get insurance policy to cover some risks to limit expenses and don’t retire from your passion.

The rector, College of Insurance and Financial Management (CIFM), Dr. Chizoba Ehiogu, urged the current workers to pay attention to their health while still active because a healthy body is needed to retire without tears.

‘Don’t rush into a business or investment you don’t have enough experience in. When you retire, it should be the beginning of another journey to drive your passion,’ she advised.

The chairman, Association of Pension Desk Officers in government parastatals, Mr. Nze Peter Nze, while lamenting that the salary package for civil servants is too meagre to give them a life without tears in retirement, urged insurance companies to conceptualise projects for civil service and government retirees, affirming that, his group is ready to partner insurance industry on this.

The former executive director, Leadway Assurance Company Limited, Ms Adetola Adegbayi said, inflation rate is growing at 22 per cen, stating that ‘if you have any investment below this, you are going to retire poor. Hence, you can buy a Financial Endowment policy with insurance companies.’

Urging Nigerians to strike away the mentality of depending on an employer for survival, adding that, “we always look for who to pay us. Why not you pay someone to circulate the capital? Circulate your capital within your rural communities by engaging in projects that can develop our rural areas. Do businesses and employ people, contribute to the wellbeing of the people within your rural community and by that, you are circulating wealth.

“Let’s be intentional about the good juices (passion) that God has blessed us with and develop it. Adopt humility, circulate your money so that your dependents and your community can benefit your presence.”

She urged people to pay tax such that they can always query when those tax payment aren’t working for taxpayers, stating that, this is what advanced countries does.

On his part, the former managing director/CEO, FBN Insurance Limited (Now Sanlam Life), Mr. Val Ojumah, said, life in retirement depends on relationships kept while one was working, saying, the awful part of retirement is loneliness.

While advising people on how to retire without tears, Ojumah, who is now a retiree, said: “Those who retire in tears are those who never acknowledge that they will retire one day, while in service. Don’t choose expensive passion, moderate your passion with some reality checks, try to buy health insurance, don’t start any business you are not familiar with, buy an endowment plan when you are still working. Integrate with the community.”

Earlier in his remarks,  Chairman of the event, past President Chartered Insurance Institute of Nigeria, Fatai Lawal, implored the public to give adequate consideration to retirement as it would come whether they prepare or failed to prepare for it.

The promoter of the summit and the publisher/CEO, Inspenonline, Mr. Chuks Udo Okonta, stressed the rationale behind the summit, stating that it was conceptualised from findings which revealed that most people enter into retirement unprepared, hence, a forum to prepare Nigerians for retirement earlier in their working life.