Pension

PenCom underscores benefits of micro pension

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Chuks Udo Okonta

Do you know that Micro Pension provides a passage of wealth to survivors in the event of death of the subscriber? This and many more benefits are the gains you would derive as you key into the scheme which would soon takeoff in the country.

According to the National Pension Commission (PenCom), the scheme would also avail the contributor access to regular stream of retirement income at old age; improves living standards of the elderly and enable contributors to benefit from the various incentives to be offered by the Pension Funds Administrators (PFAs).

Other benefits identified include, the deepening of financial literacy and inclusion; secures financial autonomy & independence of retirees; provision of national savings & long term funds; promotion of growth & development of the capital, mortgage and insurance markets and overall positive effect on the national economy as pension assets increases.

According to the Head, Micro Pensions Department, PenCom, Polycarp Anyanwu, Micro Pension in Nigeria covers three strata – Lowest, Middle and High income earners.

He noted that the targeted individuals are: the self-employed in various trades and professions in Nigeria – artisans, accountants, lawyers, mechanics, tailors, market men/women, hair dressers, architects, engineers and more.

Anyanwu noted that to make the scheme work smoothly, the commission has put in place measures such as the use of Pension Smart Cards for the transactions, adding that the products to be offered are ladened with incentives.

He said there would also be minimal transaction cost; easy withdrawal of contribution, technologically driven and strict regulation of the investment of Micro Pension funds to guarantee safety and fair returns on investment.

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