Pension administrators play a pivotal role in securing the financial well-being of contributors under the Contributory Pension Scheme (CPS), according to Olusakin Labeodan, Managing Director of Leadway Pensure. Speaking at a seminar in Lagos, Labeodan emphasized the delicate task of managing families’ future wealth by making sound investment decisions while safeguarding contributions. He noted that pension fund administrators (PFAs) are responsible for fund management and guiding contributors through the intricacies of the pension system to ensure a secure retirement.
Beyond fund management, PFAs must act as educators, fostering financial literacy and empowerment among pension holders. Labeodan highlighted the importance of transparent communication about fund options and strategies, particularly in encouraging contributors to adopt growth-oriented approaches early. By demystifying the structure of retirement savings accounts (RSAs) and providing actionable advice, administrators can help contributors make informed decisions that align with their financial goals and improve long-term security.
Labeodan called on contributors to actively engage with their pensions, moving away from passive default strategies. He stressed the importance of taking ownership of pension investments, including exploring Additional Voluntary Contributions (AVCs), to achieve financial independence in retirement. Highlighting the evolving landscape of wealth creation, he urged contributors to make proactive choices that reflect their future ambitions and unlock the potential for a comfortable and secure retirement.
