• Monday, May 27, 2024
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BusinessDay

Diversification of plans key to enjoying successful retirement – Experts

Strong economic growth, job creation key to pension sector growth – Onanuga

As surging inflation continues to erode the valuation of commodities and services, experts have implored workers to diversify their retirement plans to have a successful retirement.

The experts, who spoke at the maiden edition of the 2024 Retirement Summit held in Lagos, said with the current state of the economy, pension contributions alone can’t guarantee better life in retirement, noting that, those who solely rely on their contribution may not have their desired lifestyle in retirement.

To this end, they urged workers to always set aside funds from their salaries for Additional Voluntary Contribution (AVC) or purchase an Endowment Policy in insurance companies to augment whatever may be coming from their pension monthly stipend.

Adeolu Adewumi-Zer, founder/managing director of ZER Consulting Africa Ltd, who was the keynote speaker at the summit, urged workers to identify their passion earlier in life and invest in it for retirement, saying, this would amount to investment meets opportunities.

The former CEO of Allianz Insurance, said most enter into retirement unprepared because they lack financial planning, noting that, each worker should have a financial planner who will guide them on the best investment options and help in the management of one’s wealth.

According to her, “Retirement isn’t an ending, it’s a magnificent new beginning – a chance to unleash your resilience and craft a fulfilling future that transcends the confines of your workplace. “Don’t be passive participants in your retirement. Raise your voice, ask questions, and engage experts, network to create a personalised retirement plan that ignites your passions and fuels your dreams,” she said.

Also, Folashade Onanuga, former director-general, Lagos State Pension Commission (LASPEC), stated that employers of labour must, as a matter of urgency, inculcate retirement training for each employee, such that, he or she can be financially independent in retirement.

Similarly, Ben Ujuatuonu, managing director/CEO, Universal Insurance Plc, said those who start work earlier in life have a lot of opportunities to plan retirement early, adding that, five years before retirement, one should have concluded and finalised what business to do at retirement.

Tunde Mimiko, managing director/CEO, Sanlam Life Insurance on his part urged workers to envision the life they want to live in retirement and should avoid a situation whereby their current life is defined by career alone.

On his part, Val Ojumah, former managing director/CEO, FBN Insurance Limited (now Sanlam Life), said retirement life depended on relationships kept while one was working, saying, the awful part of retirement is loneliness.