Retirement Saving - A Panacea For Peaceful and Happy Long Life #IBNInsights



Everyone prays for a long life but only a handful of people make conscious efforts to achieve this desire. Long Life is highly desirable but it should never be a burden on the owner of such ‘life’. 

Ironically, the same factors that contribute to a happy and long life are the same factors that influence an unhappy and short life……. It is just a matter of flipping the other side of the coin on those factors. 

For example, if we say living a healthy life is a good factor for long life, it then goes to say that leaving or not living a healthy life is a catalyst for early death or a sad and short life. 

The same theory goes for a happy retirement….so, planning towards a happy retirement is an enabler for a happy and peaceful long life and failure to do so may result in the opposite direction of a sad and short-lived life. 

Gone are those days, when parents took care of their children and invested heavily on them primarily for those children to become responsible and prosperous adults to give themselves decent living and also take care of their aged parents. 

While this dream can still be a reality in this generation, the societal profile to support this desire is disintegrating and life is becoming more expensive and the ‘children’ in question are finding it hard to make ends meet, talk less of taking care of their beloved parents. Much as they are emotionally disturbed to achieve this for their parents, they continue to lack the financial muscle to do this. 


Most of these children have even left the shores of their homeland to seek greener pastures in other countries, yet their pockets are still not ‘smiling’ enough to accommodate any tangible catering for their aged parents. 

Having these realities in mind should therefore call for more consciousness of the significance of effective saving towards one’s retirement. 

Nigerians’ life expectancy, by global ranking, is often cited at 54.07 years, owing to factors such as undue Social and Psychological Pressure, Hunger, Disease, Starvation, and Violent crimes. 

Notwithstanding, most Nigerians are still able to defy this statistical figure and still live well into their old ages, despite the societal odds. Regrettable, many Nigerians are yet to appreciate retirement saving as a strategy for a happy life after retirement. 

Retirement is an eventuality that must occur at one point and therefore and requires proper planning from the first day one qualifies for this saving in his employment, but most Nigerians view retirement as far-fetched and fail to plan for it. 

statistics report only about 16 per cent of Nigerians own houses and this are those that earn income plus the few prosperous entrepreneurs. 


Therefore, If conscious efforts are not made by all concerned to encourage people to save towards their retirement, despite the Low Per Capita Income, this may spell doom for the country as the number of non – productive consumers, who will continue to be economic liabilities will multiply in many folds with a negative social consequences that may manifest directly or indirectly . 

Why then should one save for retirement? 

Traditional systems of old age security are breaking down. 

Are you sure that your children will take care of you when you retire and are aged?............This is a Cautionary Red Flag indeed and accomplishing your dream of a secure, comfortable retirement is much easier when you plan your finances responsibly 

There are several benefits schemes and four distinct ways in which a retirement benefits scheme enables employees to enjoy greater benefits than other forms of savings. 

  • In the case of occupational retirement benefits schemes, both members and sponsor (employer) contribute to the fund, all to the eventual benefit of members. This translates into ‘free income’ from the employer in the form of employer contributions going into the scheme. 
  • Members’ contributions into the Retirement Savings Accounts are tax-deductible. For example. If you earn N150,000.00 and contribute N11,250.00 to a Retirement Savings Account, your contribution is tax allowable, and this reduces your tax liability exposure. 

  • Contributions made into a Retirement Savings Account can be invested in long term assets to earn optimal returns. However, the contributions into the Scheme are by law required to diversify their investment risk. 
  • All investment income earned by tax Retirement Savings Account is tax-free, hence generating more funds for re-investment. On the other hand, if you invest directly say in treasury bills or bank deposits, you will be required to pay withholding tax on the interest earned. 
  • All retirement benefits earned by persons aged 50 years or over are tax-free. 
If you are a member of a Pension Scheme, upon attainment of retirement age, the scheme will pay you a monthly pension for the rest of your life no matter how long you live. 

You can all convert up to 1/3 of the total benefits due from a Pension Scheme into a lump sum payment. If you are a member of a provident fund, then on achieving retirement benefits age, you will be paid a lump sum which if you invest wisely, can also provide you with income for the rest of your life. 

The retirement benefits vested on an employee cannot be accessed by any person. For example, your employer cannot recover any amounts that you owe to the company from your Retirement Saving Account (RSA) benefits without your express written authorization. 


In conclusion, having your assets invested and administered by professionals under the watchful eyes of the Capital Market Authority will guarantee you the maximum benefits available under your Retirement Scheme including the ultimate peace of mind that comes from it. 

Please contact your IBN specialist for advice on risk and employee benefits consulting services. Call 0700 CALL IBN (0700 225 5426) or email info@ibn.com.ng

We are here to assist you achieve a comfortable retirement because you deserve it 
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