LIFE after retirement has remained a major concern to the average worker especially in a country like Nigeria where there appears to be no functional provision for social security for the aged.
Concerned about this social lapse, the Federal Government in 2004 put in place a pension system that would address the issue of pension administration which hitherto was treasury funded and rather than address the problem, was causing more damages and embarrassment to the nation occasioned by quantum loot and mismanagement of pension funds by the then pension managers.

The Pension Reform Act 2004 as amended gave birth to what is now known as Contributory Pension Scheme (CPS), away from the then Defined Benefits Scheme (DBS). The scheme provides for retirement saving options geared at putting a retiree on monthly income even after he or she must have retired from active service.

The options are the Annuity for Life and Programmed Withdrawal (PW). While Life Annuity is provided by Life Insurance Companies licensed in Nigeria, PW service is provided by the Pension Fund Administrators (PFAs).
Annuity is a retirement plan that guarantees income for life. This implies that when a person takes an annuity plan he/she is paid an actual determined amount of money monthly or quarterly, depending on an agreed terms with the annuity service provider, until death and the contract agreement terminates at the demise of the pensioner.
On the other hand, Programmed Withdrawal provides a retiree with guaranteed income for a period between 10 and 15 years and within this period if death occurs; the balance in the PW is paid to dependant of the deceased.

Terms and conditions of both transactions are clearly stated in part 3, Section 7(1) of the Pension Reform Act 2014 as amended; that a holder of retirement savings account (RSA) shall upon retirement or attaining the age of 50 years, whichever is later , utilize the amount credited to his retirement savings account for the following benefits;
“Withdrawal of a lump sum from the total amount credited to his retirement savings account provided that the amount left after the lump sum withdrawal shall be sufficient to procure a Programmed Fund Withdrawals or Annuity for Life in accordance with extant guidelines issued by the Commission, from time to time.”
“Programmed monthly or quarterly withdrawals calculated on the basis of an expected life span”
“Annuity for life purchased from a Life Insurance Company licensed by the National Insurance Commission with monthly or quarterly payments in line with guidelines jointly issued by the Commission and National Insurance Commission (NAICOM).”

In a simple note:
Programmed Withdrawal is an option that is calculated based on an expected life span, meaning that the pensioner will be paid on a regular basis for a fixed number of years. After which he/she ceases to earn further income from his PFA. While Annuity will be paid on a regular basis by the insurance company to the pensioner until death".

If you are retiring now, which option would you prefer and why? Secondly, if you know someone or a loved one retiring now, how would you advise them? Remember, retirement is expensive, but old age is more expensive.

For more information about the benefits of annuity plan or need further assistance on how to go about it. kindly
Contact Us on 08035600509, 09151024777 or send an email: adebiyi.linkatel@gmail.com

Adebiyi Oludare Joshua
Business Associate Dept
Leadway Assurance Limited.

Annuity remains the best option for retirees. It guarantees the retiree a steady monthly, quarterly or yearly income for life.

Choose Annuity!!!

Insuranceman:
Annuity remains the best option for retirees. It guarantees the retiree a steady monthly, quarterly or yearly income for life.

Choose Annuity!!!

What of if one is on Annuity and dies during the period can the balance be transferred or what happens to the balance

Larry1960:


What of if one is on Annuity and dies during the period can the balance be transferred or what happens to the balance

@Larry1960, if a retiree who is on Annuity dies during the guaranteed period, the balance of the fund will be paid to the named beneficiaries or next of kin.

[quote author=Insuranceman post=93603728]

@Larry1960, if a retiree who is on Annuity dies during the guaranteed period, the balance of the fund will be paid to the named beneficiaries or next of kin. [/quote.]... Ok

Insuranceman:


@Larry1960, if a retiree who is on Annuity dies during the guaranteed period, the balance of the fund will be paid to the named beneficiaries or next of kin.

Define the term "guaranteed period " please.

otomatic:


Define the term "guaranteed period " please.

@otomatic, the guaranteed period for immediate annuity is 10 years. If the retiree is still alive after this period, the insurance company will continue to pay him/her monthly, quarterly or yearly as agreed.

Insuranceman:


@otomatic, the guaranteed period for immediate annuity is 10 years. If the retiree is still alive after this period, the insurance company will continue to pay him/her monthly, quarterly or yearly as agreed.

OK.

Annuity Plan (Pension)

Annuity is a program where the retiree transfer his/her pension fund to an insurance company for them to pay him/her monthly, bi-annually or quarterly.

In annuity program, payment is made to the retiree for LIFE(that's till the person dies) irrespective of the fund transferred to the insurance company and also at a higher interest rate of return.

Its basically for retired people who have been notified that their pension is available for collection.

At this point, the retiree has two options to either go for Programmed Withdrawal or Annuity in which a particular amount would be paid to him/her either per month or bi- annually or quarterly as chosen by the retiree for life.

Annuity product is designed to pay retirees' for the entire duration of their life, no matter how long they live.

Annuity is very secure and easy to do. No story, no terms and conditions when its time to collect their money because it would be sent to their account every month like salary.

The goal of annuity is to provide a steady stream of income during retirement.

Note:

You have to choose between programmed withdrawal and Annuity on retirement.

Sharing is Caring!

Annuity for Life!

Be assured of a monthly steady income at retirement (age 60 or 35 years of service).

Annuity Plan

Annuity Plan is a policy through which prospective policyholders or retirees can convert a lump sum of money into an immediate or deferred regular stream of income payable for life.

How it Works

• You can buy Annuity Plan with the proceeds of your Retirement Savings Account(RSA) from your Pension Fund Administrator or any lump sum of money at your disposal

•  You can choose a plan that will pay a constant/flat amount or the one that increases by 5% or 10% per annum for the rest of your life

•  The policy incorporates a guaranteed period of 10years; If the annuitant dies within the first 10years, annuity will continue to be paid to the named beneficiary until the expiry of the 10year period or a discounted lump sum will be payable

•  You can choose to have your money paid to you monthly, quarterly, half yearly or yearly.

Amount of Annuity you will receive

When you buy your annuity, the amount of income you will receive will depend on the following:

• The size of your purchase amount, i.e. the initial amount invested

• The option you choose

Benefits to the Annuitants

• You will get Annuity payment for life

• The Annuity Plan offers an excellent retirement investment vehicle

• The policy offers economic protection and a shield from the uncertainties of life and investment

• It gives peace of mind

Annuity Plan (Pension)

Annuity is a program where the retiree transfer his/her pension fund to an insurance company for them to pay him/her monthly, bi-annually or quarterly.

In annuity program, payment is made to the retiree for life (that's till the person dies) irrespective of the fund transferred to the insurance company and also at a higher interest rate of return.

Its basically for retired people who have been notified that their pension is available for collection.

At this point, the retiree has two options to either go for Programmed Withdrawal or Annuity in which a particular amount would be paid to him/her either per month or bi- annually or quarterly as chosen by the retiree for life.

Annuity product is designed to pay retirees' for the entire duration of their life, no matter how long they live.

Annuity is very secure and easy to do. No story, no terms and conditions when its time to collect their money because it would be sent to their account every month like salary.

The goal of annuity is to provide a steady stream of income during retirement.

Note:

You have to choose between programmed withdrawal and Annuity on retirement.

Annuity Plan (Pension)

Annuity is a program where the retiree transfer his/her pension fund to an insurance company for them to pay him/her monthly, bi-annually or quarterly.

In annuity program, payment is made to the retiree for life (that's till the person dies) irrespective of the fund transferred to the insurance company and also at a higher interest rate of return.

Its basically for retired people who have been notified that their pension is available for collection.

At this point, the retiree has two options to either go for Programmed Withdrawal or Annuity in which a particular amount would be paid to him/her either per month or bi- annually or quarterly as chosen by the retiree for life.

Annuity product is designed to pay retirees' for the entire duration of their life, no matter how long they live.

Annuity is very secure and easy to do. No story, no terms and conditions when its time to collect their money because it would be sent to their account every month like salary.

The goal of annuity is to provide a steady stream of income during retirement.

Annuity remains the best option for retirees.

Get one today and live a joyful life in retirement.

Best wishes

Larry1960

baba I pray God touch your heart to bless me. Make I start my pos business. I have been down recently due to some difficulties I went through as a result of getting scam of my money but that's a story for another day

I wish people would come to my aids
Someone to donate embrella or chair for me
I just need to start hustling to make day end meets
I won't be lying upon down saying I never chop but I just want to set up my life in order. Please guys anyone who can help me
I would really appreciate it. With prayers and stuffs, I'm willing to drop proof that I have bought the terminal. Remaining small capital plus chair and embrella to start my business which I'm still hustling to do.
God bless you guys...

Boss man
@Larry1960
Larry1960
Abeg for the sake of God help.me out.