Many people who have retired in Nigeria are saving their money in something called “life annuity.”
This means they give a big amount of their retirement savings to an insurance company, and the company pays them money every month or every few months for the rest of their life.
By the middle of 2024, 129,435 retired people had saved N798.58 billion this way, which is more than last year when fewer people did the same.
The money for annuities comes from what these workers and their employers saved during their working years.
This is a rule in Nigeria’s Pension Reform Act. Some retirees were federal government workers, some worked for state governments, and others came from private companies.
They can take out part of their savings at once and still get regular payments for life, thanks to the insurance companies.Many insurance companies, like AIICO, are helping retired people feel safe about their future by giving them guaranteed monthly payments.
More and more people are interested in life annuities because they know it helps them have enough money even as they get older.
Insurance companies like AIICO are doing a good job, making sure retirees don’t have to worry about money when they stop working.
(Business Day)