Saving for pensions more pressing, as cultural transition deepens risk

Since the beginning of twentieth century and now, it has become obvious that dependence on children for old age care, as common with African culture is becoming less significant.

This is pointing to a significant change in culture as a result of socio cultural and economic changes that has been largely influenced by civilization and cosmopolitan influences.

The reason, being not because the children no longer have feelings for their old parents, but because they would have to also face their own challenges of survival in an environment that is becoming highly competitive and unfriendly by the time.

The trend today underpins why people in active working life must begin to save in other to take care of their life at old age in form of pension savings, so that there will be less pressure and dependence on the children for basic needs in retirement.

Earlier before the past three centuries, it was common for parents to have as many children as they can, as a fallback position in retirement, as well as for immediate benefits of direct labour for farming. This was the time of our grandparents.

These held sway at that time, as there was little influence of civilization, so children remained in the villages and supported their parents from one generation to another.

But with civilization and influence of Western education, there was the new trend to live the villages for cosmopolitan life and economic activities, which saw children leaving their old parents to seek for better means of survival in the cities and overseas.

Over time in history, children have left their parents and in search of greener pastures got new orientations and so begin to care less for the extended family setting, and with tightening economic situation everywhere the ability to provide as much for the older people began to decline.

This trend is not going to get better in the long-term future, so suggests why embracing a pension plan is inevitable for anyone that wants to have peace at old age.

The introduction of Contributory Pension Scheme in Nigeria through the Pension Reform Act 2004 as amended in 2014, no doubt is one of the best things that could have happened to Nigeria at this time.

It remains the best savings arrangement for employees in the public and private sector in Nigeria, having been made compulsory for active working persons.

Umar Mairami, managing director/CEO, Premium Pensions Limited speaking on the need to embrace the Contributory Pension Scheme during a press conference in Lagos, said “The African culture is changing, and it is important that we change with the trend.”

Mairami stated “That your children no longer care for you may not be deliberate, but because they will have to address their own challenges”.

The Premium Pension boss emphasized the need for everyone to embrace savings for retirement, saying “If you have not started savings today, start now because it’s never too late”.

“I sincerely call on every Nigerian, to embrace the Contributory Pension Scheme; understand the scheme and join before the journey gets too fast, because it pays to have something to fall back on retirement, Mairami said.

For those who have already joined the scheme and waiting for their retirement time, he urged them to keep tab with their Pension Fund Administrators, and ensure they do the necessary documentations well ahead of their retirement date so that they will have a smooth process of retirement.

The clearly stated objectives of the CPS are: to (a) ensure that every person who worked in either the Public Service of the Federation, Federal Capital Territory or Private Sector receives his or her retirement benefits as and when due.

It is also to assist improvident individuals by ensuring that they save in order to cater for their livelihood during old age.

The Pension Reform establishes a uniform set of rules, regulations and standards for the administration and payments of retirement benefits for the Public Service of the Federation, Federal Capital Territory and the Private Sector.

In other words, the CPS promises every employee minimal basic comfort in retirement, thereby reducing dependency in old age. But this cannot be achieved without the employee working consciously towards it. Therefore, if you desire to retire happily, if you truly wish to retire into the good life after a long working career, you need to plan for it.