7 Important Reasons To Plan For Your Retirement Now

January 5, 2022

There are several reasons why you might feel unbothered about planning for retirement. The reasons are endless, from not having adequate funds to the popular myths that hinder you.  

Some of these myths are: 

– You are too young to start planning for retirement. 

– Pension is for the elderly.  

– Pension is not sufficient to sustain you during retirement.  

– Pension companies never pay on time. 

– A pension is unaffordable. 

These myths are not only untrue, but they prevent you from making the decision that will impact your “golden years”. Planning for retirement starts with thinking of your post-work goals and how long it will take for you to achieve them. 

A lot of people don’t understand the reasons why getting a pension account is important. Here is  why you should start planning and not wait: 

1. Savings is easier when you’re not under pressure: Starting a retirement savings plan early reduces the pressure that mounts as those golden years approach. It makes the transition to retirement seamless. With a well-planned retirement, that stage of life is worth looking forward to. 

2. 

Don’t miss out on Employer Contributions: This is the money that is contributed by the employer into your pension fund, as an employee that works in an organisation with at least 3 employees. Such employers are mandated by the Pension Reform Act  2014 to make contributions to their employees’ Retirement Savings Account (RSA).  Job changes are not affected by such contributions as you only need to share your  RSA details with your new employer, who is mandated to continue remitting their portion of the monthly contribution. In such instances, you can also contact Premium  Pension to alert your new employer.  

3. Relying on Family members or friends is risky: Such an approach makes life during retirement uncomfortable and unpredictable, to a large extent, because misunderstandings can damage the relationship of both parties involved. This can also be a burden to such family members and friends — a situation you want to avoid. A plan with Premium Pension secures your golden years.  

4. Take advantage of compound interest: 

When it comes to Pension, time is your greatest asset. 

With compound interest, you earn returns that are added to the initial amount, making subsequent returns higher than the previous one. Let’s use an example:

Say you contribute NGN100,000 to your RSA, with an interest rate of 10% annually that compounds annually. At the end of the first year, you’ll have 110,000 – the principal plus  NGN10,000 in interest.  

In the second year, you’ll have NGN121,000—the NGN110,000 from the previous year plus the added interest of NGN11,000. By the end of the 10th year, you would have earned  NGN259,400 more than double your principal. This amount is earned without you contributing any additional funds in those ten long years. And of course, contributions are made monthly 

in the current contributory scheme. Therefore, the amount earned with compound interest will be exponential.  

Compound interests work best with time. This means you have to begin early to make the most impact on your retirement savings. 

Premium Pension is licensed by the National Pension Commission to manage the pension accounts of members. This credible PFA invests your contributions in high-yielding instruments.  

5. Flexible risk tolerance and investment opportunities: The multi-fund structure that exists in the Nigerian Pension Industry provides you with the opportunity to choose a preferred based on your risk profile and age, as well as your values. Those younger than 50, have the option of investment in Fund I or II, which differ based on their risk profile, while those above 50years, can choose between Fund II or III. In addition, Fund VI provides an option  for those with preferences for non-interest pension funds 

A more relaxed retirement: Pension provides you with something to fall back on during your golden years. You won’t have to struggle with working overtime when you should be living a comfortable life. Premium Pension prioritizes customer care and support.  

6. Access to leading investment partners: With Premium Pension, pensioners have access to investment experts who are recognised in the industry. Pension accounts are continuously reviewed and monitored. We also offer various approaches to meeting the client’s retirement objectives. 

Plan now to live a life of comfort 

Now you understand the benefits of planning early for your golden years. At Premium  Pension, we provide services that meet our retiree needs and always make your money work for you even while you work. To start planning, download your free copy of the eBook to know the best options available for you.  

Make an early move. Open a Premium Pension account to begin now. 

Join The Conversation

Bring a friend.

You'll like this

November 24, 2020

The area now known as Nigeria is home to over 350 different tribes. Many of these tribes, some of which date back several centuries before colonization, boasted of several artefacts and monument. Sadly, colonization meant the loss of many of these artefacts, which were flung all over the world. For example, the British conquest of […]

November 30, 2019

The subject of today’s Sex Life is a 27-year-old man who had only ever had sex with women until last month. After unexpectedly making out with a guy at a party, he had his bisexual awakening, and now he feels like he just hit reset on his life.


Watch

Now on Zikoko

Recommended Quizzes

April 14, 2020

Every friend group consists of very different and specific characters — from the parent to the fun one — and it can be a little tough figuring out where you fall. So, we’ve created a quiz that lets you know exactly what kind of friend you are. Take to find out:

October 29, 2019

We are going to be attempting to guess when you’ll marry based on your favourite Nigerian foods. What does your fave swallow have to do with when you’ll tie the knot? Please, don’t ask complicated questions. This quiz is rigorous and accurate (don’t quote us), so just take it already. QUIZ: Why Do You Have […]

October 30, 2019

Kemi Adetiba’s King of Boys movie got a lot of things right, especially casting, so yes, it was a monster hit. Now, we know you may not have put much thought to this, but the personalities of some of the characters closely match yours, and we would like to help you find the perfect match. […]

November 11, 2019

Everyone has something to say about what kind of person they are. But how well do we truthfully evaluate these things? Not that much, I can assure you. The average person is always lying to themselves to make sure they look good. But you know what and who doesn’t lie? Zikoko quizzes that’s what. Take […]

More from Inside Life

Watch

Trending Videos

Zikoko Originals

December 14, 2020
What happens when a group of chatty young Nigerians talk about things they're passionate about? You get Nigerians talk. A show that discusses very familiar struggles for the average Nigerian. From relationship deal breakers to sex education with Nigerian parents to leaving Nigeria, be prepared for a ride.
November 2, 2020
'The Couch' is a Zikoko series featuring real life stories from anonymous people.
October 26, 2020
A collection of videos documenting some of the events of the EndSARS protests.
June 22, 2020
'The Couch' is a Zikoko series featuring real life stories from anonymous people.
June 22, 2020
Hacked is an interesting new series by Zikoko made up of fictional but hilarious chat conversations.
June 4, 2020
What happens when a group of chatty young Nigerians talk about things they're passionate about? You get Nigerians talk. A show that discusses very familiar struggles for the average Nigerian. From relationship deal breakers to sex education with Nigerian parents to leaving Nigeria, be prepared for a ride.
June 2, 2020
Quickie is a video series where everyone featured gets only one minute to rant, review or do absolutely anything.
May 14, 2020
Isolation Diary is a Zikoko series that showcases what isolation is like for one young Nigerian working from home due to the Coronavirus pandemic.
March 12, 2020
Life is already hard. Deciding where to eat and get the best lifestyle experiences, isn't something you should stress about. Let VRSUS do that for you.

Z! Stacks

Here's a rabbit hole of stories to lose yourself in:

Zikoko amplifies African youth culture by curating and creating smart and joyful content for young Africans and the world.
X