UNILORIN advises staff on plans for retirement

The Head, Pension Unit at the Registry of the University of Ilorin, Mrs Abimbola R. Ologe, has advised staff members of the University on the need for them to be extremely careful in their retirement plans.

Mrs Ologe gave this advice last Wednesday (January 7, 2024) at the institution’s Main Auditorium while speaking at a sensitisation programme organised for staff of the University who are due for retirement this year.

Mrs Ologe, who is a Principal Assistant Registrar, explained that it was important for employees of the University to be careful with decisions that would have impact on their future financial security.

She stressed the significance of embracing retirement planning and making well-informed decisions to ensure a comfortable future. She further advised all staff members to think thoroughly and consider their options before choosing a PFA and subscribing to a retirement plan.

In his paper, a pension fund administrator, Mr Kolapo Adeyara, explained that there are two types of  retirement plans, namely Programmed Withdrawal and Annuity.

            He explained that the programmed withdrawal is the first lump sum option, where the PFA administrator spreads the balance of the withdrawal over a predetermined number of years, providing a steady monthly or quarterly payment to the retiree. He pointed out that the programmed withdrawal is primarily based on an expected life expectancy period.

 Mr Adeyara, who was the representative of the Custodian Assurance Limited, said that the other type of pension is “Annuity”, which, unlike the first one provides lifetime payments to the retiree, saying that the risk of longevity is often transferred to the PFA.

Mr Adeyara added that the Custodian Life Assurance Limited mission is targeted at developing, packaging and delivering innovative issurance products that best satisfy customer needs while operating a highly profitable, efficient, resourceful and ethical organisation.