Why pre-retirement planning is imperative - Stanbic IBTC Pension Managers

Dr. Demola Sogunle

 

 

 

Chuks Udo Okonta

People are often apprehensive about retirement because they do not plan for it early enough. Ideally, one should start planning for retirement from the day one takes on a first job.  It demands setting aside part of current income into a retirement savings account (RSA). The nascent Nigerian pension system, with defined contributions as its foundation as enshrined in the Pensions Reform Act of 2004, charts a clear path for employees to maintain a stable standard of living even well after retirement.   

This imperative was highlighted at the inaugural seminar on pre-retirement organised by Stanbic IBTC Pension Managers Limited, a member of Stanbic IBTC Holdings, in Lagos on November 7. The seminar also provided a platform for the leading Pension Fund Administrator (PFA) to forge closer ties with its customers and to enlighten the public on developments in the pension industry. The seminar, which had the theme, “Life renewed at 55 and beyond”, had over 450 stakeholders in attendance.  

 Chief Executive of Stanbic IBTC Pension Managers Limited, Dr. Demola Sogunle, said as a service provider of repute and trust, the PFA will continuously offer innovative customer value propositions, part of which include creating awareness about the benefits of retirement savings and helping workers plan for that retirement.  

Sogunle emphasized that planning for retirement should commence early in an individual’s working life as it typically takes many years to accumulate the necessary funds with which to live comfortably when the salary eventually ceases to arrive at the end of every month.  “This seminar, besides celebrating you all who will soon become retired clients of Stanbic IBTC Pension Managers, will also provide an opportunity to address the concerns or anxieties you might have as retirement draws close. Among issues to be examined by seasoned professionals are preparation for retirement; how to access your retirement benefits; your health at retirement and investment opportunities for post-retirement,” he added.  

Stanbic IBTC Pension Managers, stated Sogunle, is backed by the requisite expertise and experience and strong and sound financial clout of the Standard Bank Group, ensuring efficiency in the management and safety of clients’ investments. “We believe that the support, experience and capabilities of the Standard Bank Group, to which Stanbic IBTC Pension Managers Limited belongs, have been instrumental in enhancing our expertise, resource base and general service delivery; thus reinforcing our goal of providing excellent service to all our customers.”  

Innovations introduced by the PFA to enable clients experience excellent and convenient service delivery include the Stanbic IBTC Pension Managers mobile office which was launched in Lagos recently; the first 24-hour multilingual call centre with representatives who speak the three major Nigerian languages - Yoruba, Igbo and Hausa; and also Pidgin English; a footprint of over 200 branches of Stanbic IBTC Bank where  RSA clients can access pension service; Stanbic IBTC Pension Managers’ nine regional offices; as well as selected branches of Zenith Bank where the PFA operates. Other access points include Stanbic IBTC Bank ATMs, online service for RSA holders, email, SMS and the Pension Notes which accompany the hardcopy RSA statements sent to customers quarterly.

  “In our eight years of existence, we have emerged Nigeria’s biggest PFA with over one million retirement savings account holders and assets under management of over N950 billion, paying close to N1.7 billion to over 29,000 retirees monthly. Over N178 billion has been paid to retirees since we commenced operations in 2005. Our aim is to continue to set higher standards of service delivery and ensure that our retirement savings account holders derive maximum value from their contributions,” Sogunle stated.  

Sogunle added that Stanbic IBTC Pension Managers Limited was set up with a mission to enable Nigerians retire to a life of relative comfort and peace after their working lives. “We want to help people plan for their retirement to ensure that the retirement phase is as rewarding and productive for them as possible,” he stated.  

At the end of the seminar, Sogunle outlined three crucial considerations which everyone must give a thought to for a secured future. The first being that no one will ever care about your retirement investments as much as you do – so educate yourself. The second thought is that when making retirement investments, seek professional assistance – even the best athletes have coaches. The third thought is even if you may have stopped working for money; your money should never stop working hard for you.  

Stanbic IBTC Pension Managers is a subsidiary of Stanbic IBTC Holdings, a member of Standard Bank Group, a full service financial services group with a clear focus on three main business pillars - Corporate and Investment Banking, Personal and Business Banking and Wealth Management. Standard Bank Group is the largest African bank by assets and earnings. It is rooted in Africa with strategic representation in 19 countries on the African continent, including South Africa. Standard Bank has been in operation for over 150 years and is focused on building first-class, on-the-ground banks in chosen countries in Africa and connecting other selected emerging markets to Africa and to each other, applying sector expertise, particularly in natural resources, globally.