Stanbic IBTC Encourages Nigerians to Boost Retirement Savings with Voluntary Contributions

Nigerians are being encouraged to look beyond mandatory pension contributions and consider adding extra savings for retirement. John Okhueleigbe, who leads Approved Schemes and Inclusion at Stanbic IBTC Pension Managers, spoke at a breakfast forum in Lagos organized by the Nigeria–South Africa Chamber of Commerce.

Okhueleigbe explained that making voluntary contributions to a Personal Pension Plan (PPP) can provide additional income during retirement and may offer tax benefits. Contributors can access up to half of their voluntary contributions every two months, allowing for up to six withdrawals a year.

He highlighted that these extra savings can help reduce taxable income for employees and may also provide tax relief for self-employed individuals. Okhueleigbe stressed that pension savings should complement other investments, like real estate and mutual funds, to create a well-rounded financial plan.

To illustrate the importance of planning, he shared a story about an oil-services executive who witnessed retired colleagues facing financial difficulties. This prompted the executive to seek financial advice and consider a pension plan to ensure a stable income after retirement.

Okhueleigbe advised individuals to set retirement goals and figure out how much they need to save regularly to meet those goals. Employees can arrange for additional contributions through their payroll, while others can contribute directly at their convenience.

He also mentioned that parents can contribute to the pension accounts of children under 18, following the applicable rules. The minimum retirement age in Nigeria is generally 50, which is important for planning purposes.

NACC Chairman Ije Jidenma emphasized the need for better access to structured retirement savings, especially as small businesses and entrepreneurship grow in Nigeria. She called for business owners to incorporate retirement planning into their financial strategies and to promote financial literacy among employees.

Jidenma noted that discussions about economic growth should also focus on securing individuals’ financial futures. She thanked Stanbic IBTC Bank for sponsoring the forum and supporting the conversation about personal pensions and financial planning.