According to PenCom, micropension plans increase financial independence

The National Pension Commission (PenCom) stated yesterday that the Micro Pension Plan increases contributors’ financial independence.

More than 84,000 Nigerians have signed up for the continuing program, according to the Commission, which also said it would keep up a large awareness campaign to encourage more people to participate.

The Lagos International Trade Fair, which is currently taking place, was organized by the Lagos Chamber of Commerce and Industry, and the head of PenCom’s Micro Pensions Department, Dauda Ahmed, informed reporters of this.

Ahmed mentioned that the commission spoke with potential participants and informed them of the value and advantages of the micro pensions plan.

According to the statement, the commission’s new pension program is an initiative of its five-year strategic plan to provide comprehensive and increased coverage of the pension business.

It also aims to give people in the unofficial sector a chance to start retirement savings.

According to him, 90% of Nigerian employees work in the unorganized sector, and the majority of them do not have access to retirement benefits. He also said that as life expectancy rises, there is an increased risk of both poverty and old age.

However, he pointed out that the micro pension program ensures retirees’ independence and financial security in addition to raising their standard of living when they retire as independent contractors.

According to the new plan, among others who can contribute to their pension are farmers, artisans, traders, accountants, architects, and celebrities. Responses have been really positive, and we intend to keep and increase the momentum, he said.

“This is only one of our initiatives; we will supplement it with outreach to those we haven’t reached, media awareness campaigns, and engagement with union leaders and associations,” Ahmed said.

In support of him, Tunde Alayande, Head of PenCom’s South-West Zonal Office in Lagos, stated that Lagosians are supporting the initiative and that the commission will create an atmosphere that will enable pension fund administrators (PFAs) and participants to prosper together.