Insurers want retirees to adopt annuity as future investment

Nigeria insurers are in unanimous in calling on the soon-to-be retirees and already retired ones to adopt annuity products offered by underwriting companies across the country as a way to better their life in retirement years.The advice, according to the underwriters, was a sure way to live with steady income during retirement days, adding that workers must take it as priority as they get older.

Besides, the Nigerian Insurers Association (NIA) has also called on potential retirees to receive unprejudiced and independent practical advice and training on investment issues necessary for prudent management of their lump sum disbursement.This insurers, at a one-day workshop organised by NIA with the theme: “Preparing for tomorrow today’, in Lagos, harped on the need workers to become knowledgeable and skilled in whatever they want to do, particularly in starting a business on a small scale.

An industry expert, Olusola Ilori, who presented a paper at the workshop, on the “significance and necessity of building economic back up”, maintained that retirees were ill-equipped to invest their lump sum themselves and also to choose the better financial advisers that could lead them well in their decision making.

Speaking on what the retirees should do before investing their lump sum, she said that they should take a good look at their financial habits and history; get good independent advice from three good financial advisers and have a plan.Ilori also warned against folly of “putting all your eggs in one basket”, as opposed to diversifying investments, encouraging all to become knowledgeable and skilled in whatever thing they decide to do, as well as starting business on a small scale.

NIA Chairman, Tope Smart, who also spoke at the workshop, encouraged the retires to avoid scams and get-rich-quick schemes. “Don’t lend money to people on your lump sum (if lent to your family, consider it a gift). Don’t buy a new car; don’t marry a new wife; don’t start building a magnificent house,” he said.While explaining the importance and necessity of building economic backups, she stated that there was need to maintain balanced lifestyle out of office.

“There is the need to attain financial independence. There is also the need to strive for economic self-sufficiency through other sources of income to complement pensions paid monthly.“On no account should one be pressurised to retire without planning and having at least two or three other streams of income to complement pensions. These would give one financial security, guaranteeing dignity and comfort in retirement, Smart said.