Representatives聽of聽the聽Leadway聽Assurance Company Limited聽have interacted with the聽staff of the 水果派 of Nigeria聽(NOUN) on聽the Contributory Pension Scheme聽and its ancillary aspects.
The team, led by one Mr. Amos, visited the headquarters of the university on Friday, September 8, 2023 and urged the staffers聽to take annuity at their retirement聽as聽it聽guarantees聽pensions for life.
Speaking on the聽company鈥檚聽annuity packages, Amos聽said聽the package can be bought with an external source of income or proceeds from聽one鈥檚聽Retirement Savings Account (RSA).
“Annuity purchased with an RSA must have a minimum of 10 years guarantee period. However, for premiums from other sources, the guarantee period may vary from 0 to 20 years,” he聽said at the interactive session, also streamed live via zoom.
According to聽him,聽there are three annuity payment options to choose from,聽聽saying that the聽Level聽Income聽Payment option pays the highest income and remains the same throughout聽one鈥檚聽lifetime regardless of inflation.
The second option, he said, is聽called the聽Increasing聽Income聽Payment option, which聽protects聽one聽from inflation by guaranteeing an annual increment of 5% or 7.5% of the annuity payment.
The third option,聽called the聽Spouse聽Option,聽provides payment of 25%, 50%, and 75% of聽one鈥檚聽annuity payment to聽his/her聽spouse for the rest of their lives聽after the expiration of the guaranteed period upon the death of the primary retiree (Annuitant).
The visiting team聽assured staff that with an annuity they can live on a completely tax-free salary for life after retirement, as the company currently pays about聽N20,000 retirees monthly.
While answering some questions聽from the staff, the聽Leadway Assurance聽representatives mentioned that聽annuities provide individuals with a way to potentially accumulate wealth, defer taxes, preserve their principal, and ensure a reliable income stream in retirement.
They noted that annuity transfers all the risk of the down market to them, meaning that聽annuity owners are protected from聽the聽market risk and longevity risk.
Amos thanked the management and staff of the university for the opportunity to speak to them and encouraged them to create a long-term income through annuities.