To enhance pension education in Nigeria, Access Pension has advised individuals on the importance of balancing their risk appetite while exploring portfolio diversification and making strategic investments for retirement.
This was highlighted during the recent ‘Plan Smart, Secure Your Future’ webinar organised by Access Pensions in Lagos. The event, which focused on the theme ‘Pensions Unpacked: Mastering Retirement Planning,’ featured key officials from the firm sharing insights on prudent financial strategies for individuals planning for retirement.
Adaeze Raji, deputy lead, Ecosystem Orchestrator at Access Pensions, stressed the importance of striking a balance between risk and return when building a retirement portfolio.
“The most important thing is balancing your risk and return scale. And this is particularly relevant when looking at stocks and bonds,” Raji said during the session.
She elaborated further, noting: “When you’re thinking about investing towards retirement, you can be conservative, meaning you have a low-risk appetite, which implies balancing investments between variable income and fixed income instruments. Alternatively, if you have a high-risk appetite, you might lean heavily towards high-yielding investments like equities.”
Raji also encouraged participants to diversify their investments and seek financial knowledge. “Seek instrument diversification to limit downside risks, obtain some exposure to USD assets to mitigate the impact of exchange rate weakness, and consult a good financial adviser,” she recommended.
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She highlighted the value of creating a diversified portfolio, explaining, “Assets are not just stocks. If you earn your income in your local currency, it makes sense to always include exposure to assets in stronger or reserve currencies.”
Meanwhile, Bilkisu Ogirima, head of Strategy and Products/PCD North at Access Pensions, discussed how retirees could unlock homeownership by using 25 percent of their Retirement Savings Account (RSA) for mortgage payments.
“Unlocking RSA savings for mortgage down payments will be catalytic for the development of the housing market,” Ogirima said. She noted that while guidelines for the scheme were released in September 2022, RSA mortgage applications and approvals began in Q2 of 2023.
On the topic of selecting between annuity and program withdrawal as retirement payment options, Nicholas Ahamiojie, Brand & Communications Officer at Access Pensions, reiterated the firm’s commitment to educating clients on their choices.
“Having journeyed with you as your Pension Fund Administrator, it is our obligation to inform you of the payment options available at retirement. Annuity is administered by Life Insurance Companies, while Program Withdrawal is offered and administered by PFAs,” Ahamiojie explained.
The webinar, part of Access Pension’s ongoing commitment to pension education, provided participants with crucial insights to help them make informed financial decisions as they plan for the future.
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