Pension administrators have continued to produce encouraging and positive returns, following measurement of the performance of Nigerian Pension Funds Administrators, a statement from AXA Mansard Pensions has said.
The company said by the end of June 2019, had shown consistency in its performance as it remained top four in all four funds with a year-to-date return of 6.54 per cent in Fund 1; 6.44 per cent in Fund 2; 6.97 per cent in Fund 3; and 7.39 per cent in Fund 4.
It stated, “Pension funds are collective investment undertakings that manage employee savings and retirement. Their primary objective is to provide pensioners who have reached retirement age with income.
“Pension Funds Administrators are expected to open Retirement Savings Account for employees, invest and manage pension fund assets, pay retirement benefits and account for all transactions relating to the pension funds managed by them.”
Creating a pension scheme early in life has proved to be an established means of reducing old-age poverty and reducing the difficulties faced by multi-generational households, it stated.
The statement said aside the 18 per cent mandatory contributions from employee and the employer, a worker could also voluntarily contribute to increase greater chances of a higher retirement plan.
It stated, “Voluntary contributions refer to additional contributions (after the mandatory deductions) from your salary to your RSA where your regular pension contribution will not be sufficient to meet your personal retirement goals. The funds will be invested alongside the mandatory contributions in your RSA, thereby ensuring that your money works harder for you.
“It is nice and relaxing to know that while you are currently working to make money, your money is also doing the same thing – working for you. It gives you certainty and peace of mind and makes retirement even more looking forward to. Voluntary contributions are deducted from your total emolument before tax is applied.
“In addition to boosting your retirement funds, your voluntary contribution can also serve as a form of targeted savings towards specific projects such as a dream vacation, children’s school fees, among others.”
