Kindly leave a comment and share
Chuks Udo Okonta
About 80 per cent of people who collected pension lump sum at retirement never successfully used the funds for the intended purpose, experts have said.
One of the experts, a pension guru said many retirees clave for lump sum even when they never needed the funds.
According to him, when his mother retired, she sought his counsel if to collect the lump sum? He noted that he advised her not to collect the fund, but she went ahead to collect the fund and for the past 10 years, the fund has been in her bank account without necessarily putting it to use.
He submitted that most retirees just follow the band wagon effect in accessing lump sum and admonished retirees not to access the fund if they don’t need it.
Another pension expert said the public outcry on low monthly pension benefits often stem from reduction in Retirement Savings Account (RSA) balance due to access of lump sum by retirees.
He encouraged retirees to secure their funds and ensure they do not depilate the funds through unnecessary withdrawals, such as lost of job benefits benefits and lump sum payment.
The expert stated that an enriched; sustained and regular pension benefits payment is necessary for a comfortable retirement lifestyle.
Another expert narrated how a retiree was defrauded of her lump sum. According to her, the retiree have accessed the lump sum, was approached by individuals who pledged to introduce her to a diesel supply business, which she invested her fund and that was the end of the venture.
She enjoined retirees to be wary of the temptation of collecting lump sum when they don’t need it.
3 Comments