Payments of N13.21 billion in lump sums to annuity retirees in the first quarter of 2022 have been authorised by the National Pension Commission (PenCom).
According to information gleaned from the commission’s weekly report on “Retiree life annuity,” this is the case.
According to the statement, “During the quarter under review, the commission approved 3,264 retirees under the retiree life annuity. A total lump sum payment of N13.21 billion was approved for distribution to retirees. In contrast, N22.69 billion was distributed to 14 retiree life annuity providers as a premium in exchange for N231.93 billion monthly/quarterly annuities.
According to Niyi Onifade, managing director of Heirs Life Assurance, annuity plans paid retirees a consistent sum, either monthly or quarterly, for as long as the annuitant lived.
He claimed that by doing this, the person would have financial security even after retiring.
He said about the company’s annuity plan, “Pensioners have every reason to live life confidently as the annuity plan takes care of the worries of retirement, specifically, the uncertainty of the future. At Heirs Life, we continue to address the specific needs of different audience segments in line with our mission to make insurance accessible to everyone.”
Mrs Cecilia Osipitan, managing director/chief executive officer of Great Nigeria Insurance Plc, described a life annuity as a stream of periodic payments that started at a specific date, which would either occur at the regular retirement age or age 50 in the case of early retirement.
She said that based on the retiree’s option, the payment might be made either monthly or quarterly. She listed several advantages, including a steady stream of regular income for the retiree, protection from the risks associated with investing lump sum benefits, structured resource management, and the transfer of the risk of asset depreciation and potential failure of retiree investments to insurance companies that were better able to manage such risks.
She said, “Insurance remains the most reliable bedrock of our existence, and cultivating the culture of insurance can never be over emphasised. There is a need to call for a paradigm shift through effective sensitisation of the insuring public as it is very important to imbibe the culture of getting appropriate insurance cover to protect our assets and lives in case of any eventuality.”
