Pensions

Retirees in Nigeria can’t survive on pension – Expert

A pension expert has said that retirees in Nigeria cannot survive on pension alone unlike their counterparts abroad.

The expert, who is also an economist, Mr. Olajide Gbenga, told the Daily Trust in Abuja    that Nigerians receive one of the lowest retirement benefits in the world.

“We have distorted the very essence of retirement benefits in this country.  Retirees are seen and treated as deadwoods,” he said.

The expert said the situation is even worst at the sub national levels where many retirees take pensions not up to 10 per cent of their monthly salary while in active service. He said ideally, pension should not be less than 50 per cent of the retiree’s salary while in active service.

“The little they pay to these pensioners is even delayed. Most retirees, especially state government retirees, cannot survive on pension,” he said. He said pensioners need to find alternative ways of making money to survive instead of depending only on pension.

He said workers should also plan for retirement by developing entrepreneurial skills before they finally exit active employment.

 

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