3 challenges to getting Nigeria ready for retirement
Nigeria, like the rest of the world, is getting ready for retirement at a pace that might not meet the need of the future.
In monetary term, the World Economic Forum (WEF) puts the likely gap between the outcome of global efforts at funding retirement and reality of retirement needs at $400 trillion by 2020.
This shows that retirement realities may outweigh retirement preparations and expose elderly persons to financial insecurity in future.
Chief Executive Officer of Principal Financial Group, Daniel Houston, identified poor coverage, inadequate income and sustainability issues as the three key challenges to getting the world ready for retirement and proving financial security for all elderly persons.
Poor coverage: While, the WEF was not specific about Nigeria’s share of the $400 trillion pension shortfall by next year, Federal Government’s data show that Nigeria had a pension deficit of over N2 trillion before the 2004 pension reform that ushered in the Contributory Pension Scheme (CPS).
As at 2019, pension assets in Nigeria has exceeded N9 trillion even as accrued rights and defined pension benefits remain serious burden on the nation’s treasury.
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