The National Pensions Commission has approved lump sum payments of N13.21 billion to retirees in the first quarter of 2022.
This is according to data obtained from the commission’s quarterly report on the “life annuity of pensioners”.
He said that “the commission granted approval to 3,264 retirees under the Retiree Life Annuity during the quarter under review. A total lump sum of N13.21 billion has been approved for payment to pensioners, while N22.69 billion has been approved for payment to 14 pensioner life annuity providers as premium in exchange for a total monthly/quarterly annuities of N231.93 million.
Managing Director, Heirs Life Assurance, Niyi Onifade, said the annuity plan pays retirees a stable monthly or quarterly amount for as long as the annuitant lives.
In this way, he said, the individual was assured of a financially secure future, even in retirement.
Speaking about the company’s annuity plan, he said: “Retirees have every reason to live with confidence because the annuity plan takes care of the worries of retirement, especially the uncertainty of coming. At Heirs Life, we continue to meet the specific needs of different audience segments in line with our mission to make insurance accessible to everyone.
The Managing Director/Managing Director of Great Nigeria Insurance Plc, Mrs. Cecilia Osipitan, explained that life annuity is a stream of periodic payments which commences on a specified date, either at normal retirement age or at age 50 in the case. early retirement.
The payment, she said, could be monthly or quarterly depending on the retiree’s preference. According to her, the advantages included the continued stream of regular income for the retiree, the insulation of the risks associated with the investment of lump sum benefits, the structured management of resources and the transfer of the risk of dwindling assets and possible failure of investments by retirees in insurance companies better equipped to manage these risks.
She said, “Insurance remains the most trusted foundation of our existence, and cultivating the culture of insurance can never be overemphasized. There is a need to call for a paradigm shift through effective outreach to the public of insurers as it is very important to imbibe the culture of obtaining proper insurance coverage to protect our assets and our lives in case of an eventuality.