PHOTO: AYODELE ADEDIRAN
Insurance experts have advised Lagos State employees to plan ahead of their retirement adequate plans to avoid unnecessary financial stress after retirement from paid employment.
The insurance players who gathered at the Retirement Readiness Workshop, organised by the Nigerian Insurers Association (NIA) in collaboration with the Lagos State Ministry of Finance, held in Lagos, called on the employees to accept annuity as their retirement plans.
An annuity plan is a pension-regulated option that pays a stream of regular income throughout one’s retirement life. An annuity is a product of life insurance designed to provide individuals with a steady stream of income during retirement, ensuring financial security and peace of mind.
With flexible options tailored to meet diverse needs, the plan offers a reliable solution for retirees seeking financial stability in their post-working years.
Speaking on a theme, ‘Annuities: What they are, the types, and how they work’, Chief Executive Officer, Heirs Life Assurance (HLA), Niyi Onifade, said people who fail to make adequate savings or create sources of income to sustain themselves after retiring from active service in the public or private sectors face a lot of predicaments.
He listed the causes of such failure to include having one stream of income, lack of savings and investment, acquisition of liabilities instead of assets, inflation, lack of financial education, impromptu retirement amongst others
The MD said: “These crises have forced many households to significantly reduce their standard of living after retirement, making them rely on families, friends, charities, and the government for financial support for them to meet their needs.”
Onifade also stressed the benefits of subscribing to holistic retirement planning that provides financial backing throughout life.
He also stressed the necessity of being prepared for retirement, while sharing annuity options available to retirees.
He said: “At Heirs Life Assurance, we recognise the need for individuals to secure their financial future and we believe that an annuity plan offers a robust solution that aligns with retirement goals.”
Director General, NIA, Yetunde Ilori, who also spoke at the event stressed the importance of the retirement readiness workshop, saying it provides a platform for intending retirees to enhance their knowledge and better prepare for retirement age.
