By LOVETH-AZODO CHIJIOKE, Lagos
Nigerians have been urged to begin planning for retirement early as rising inflation, declining purchasing power and changing work patterns continue to heighten the risk of financial insecurity in old age.
The call was made by the Head of Personal Pension Plan at Leadway Pensure PFA, Mrs. Rahinatu Omolamai, during the annual training programme organised by Leadway Group for members of the Nigerian Association of Insurance and Pension Editors (NAIPE), where she stressed that retirement planning has become a financial necessity rather than an option.
Delivering a presentation titled “Building Financial Wellness: The Role of Retirement Planning,” Omolamai said the country’s current economic realities have made long-term financial planning more critical than ever, warning that many Nigerians remain vulnerable to old-age poverty because they postpone retirement savings.
She noted that retirement planning should not be limited to salaried employees, explaining that self-employed professionals, entrepreneurs, freelancers, business owners, sports personalities and Nigerians earning foreign currency also have pension products designed to suit their income patterns and career paths.
According to her, while employees under the Contributory Pension Scheme can boost their retirement benefits through Additional Voluntary Contributions under the Personal Pension Plan (PPP), self-employed individuals enjoy the flexibility of contributing based on their earnings. She added that Nigerians earning in foreign currencies can also preserve the value of their retirement savings through Fund VII, which accommodates foreign currency contributions.
Omolamai also sought to correct the misconception that pension savings remain inaccessible until retirement, explaining that pension contributions are structured into retirement and contingent portions, allowing contributors who meet prescribed conditions to access part of their savings without compromising their long-term retirement benefits.
She observed that inflation and the continuous depreciation of the naira have significantly eroded purchasing power over the years, making diversification an essential strategy for protecting retirement savings.
The pension expert further highlighted the growing burden of what is popularly known as “Black Tax,” where many Nigerians bear substantial financial responsibilities for extended family members, often at the expense of their own future financial security.
According to her, proper retirement planning can help individuals meet family obligations without sacrificing their long-term financial wellbeing, while also breaking the cycle of intergenerational financial dependence.
She emphasised that time remains one of the most valuable assets in wealth creation, noting that individuals who begin saving early benefit more from the power of long-term investment growth than those who delay retirement planning until later in life.
Omolamai described financial wellness as more than earning an income, saying it also involves preparing for retirement, managing financial risks and building a lasting legacy for future generations.
She also called on journalists to play a greater role in promoting retirement awareness through sustained public education, noting that the media can influence positive behavioural change by encouraging Nigerians to prioritise their financial future.
“Every article, interview, podcast or broadcast is an opportunity to move someone from procrastination to preparation,” she said.
She added that one of the greatest gifts parents can give their children is ensuring they are financially independent in retirement, rather than leaving the next generation with the responsibility of funding their parents’ old age.
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