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Chuks Udo Okonta
Achieving good retirement requires determined and conscious efforts from employees and employers. But as employees are beneficiaries of the efforts, they must show more concern on retirement matters than employers.
No matter the good retirement policies entrenched by employers, many factors may cause employers not to implement the laudable objectives outlined in the retirement policy documents. And this is where it becomes necessary for employees to see to the full implementation of the policy.
At this point, this article would highlights those things employers do that can push employees into retirement hell and they are:
*Minimum pension contributions
Employers abiding strictly to prescribed minimum pension contributions can push employees into retirement hell.
The Pension Reform Act (PRA) 2014 states that 10 per cent pension contributions and eight per cent from employees is the minimum, hence employers are allowed under the law to contribute above 18 per cent to enable employees have robust fund in their Retirement Savings Account (RSA).
To avoid retirement hell, employees should always push beyond the 18 per cent threshold.
*Defaults on contribution and remittance
Many employers hide under known and unknown factors to violate rules on pension contributions and remittances for employees.
It is therefore the duty of employees to ensure employers contribute and remit their pension contributions as stated in the law.
*No retirement training
Employers also push employees into retirement hell by denying them retirement focused retirement trainings.
Exposing employees to how to adjust, cope and start a new life in retirement would enable them retirement without tears and worries, but walking into retirement unprepared can be turbulent.
*Pension negotiation
Depriving employees the right to pension negotiation impacts their pension contributed funds negatively.
Employees should note that they have the right to negotiate pension contributions just like their salaries, going by the law, 18 per contribution is just the minimum, meaning that it can be negotiated above that threshold.
*Self interest
In spite what the PRA 2014 provides that employees should choose their pension fund administrators, many employers, owing to personal interest forced their employees to registered with their choice PFAs.
This denies employees rights of subscribing to PFAs with better returns and better service delivery.
Employees should know and exercise their rights. Those already forced to stay with wrong PFAs, should leverage the RSA transfer system – transfer window to move their retirement savings account funds.
*Investment training
While most employers conduct work focused trainings for employees, they never equip and expose them to investment tailored training that would help them make wise investment decisions.
Employees who desire good lifestyle in retirement should demand investment focused trainings from their employers.
Retirement hell really exist and employers are aware of this, it therefore behooves on employees to halt their employers whenever they try to push them into such a terrific abode, by directing them to comply with stipulated rules and also ensure priority is placed on their wellbeing.
