Pension is very important and necessary to employees whether civil servant or not because it is the hope of many employees and maybe the only means of savings. A pension is a retirement account that an employer maintains to give you (employee) a fixed payout when you retire, though the payout typically depends on how long you worked for your employer  and on your salary. When you retire, you can choose between a lump-sum payout or a monthly “annuity” payment.

There are 5 ways pension scheme can help employees:

  1. Pension scheme helps you have some savings which would have been practically impossible to some employees.
  2. It will help you plan your future when retired
  3. Continuous payment of monthly pension even when you have retired
  4. It will help you invest in your dream business
  5. It will guarantee you peace of mind after retirement, because you will not have to borrow unless on exceptional cases.

There may be other benefits attached to pension scheme which may not have been mentioned in this publication. All these benefits mentioned above could be a genuine reason for one to maintain a long period of service, this is because the value of money you will receive on monthly basis after retirement is influenced by two factors (a) the salary (b) the years of service.

But now as an employee, have you taken your time to calculate your net worth after putting so many years working for government or private organsations? You can calculate this by multiplying your salary by the number of years you intend to work multiplied by 20percent.  E.g. monthly salary x 30 years of services = sum of total emolument x 20% = pension.

Now consider the relevant documents in the case of Voluntary/Normal Retirement

  • Letter of application for retirement in previous employment
  • Letter of approval from employer granting retirement
  • Copy of enrolment letter from your pension administrator
  • Salary pay slip (showing Salary Grade Level/Step) at the period of exit
  • Copy of birth certificate/sworn declaration of age
  • Certified copy of retirement bond (to be submitted at exit)
  • A letter from your bank confirming ownership of Account Number and branch for the purpose of remitting your benefit.
  • Your choice of benefit; either monthly or quarterly Programmed withdrawal
  • Confirmation of next-of-kin
  • Two copies of executed Programmed Withdrawal Agreement
  • Original copy of executed Retiree Indemnity Form (Public Sector retirees only)
  • Completed Standard Notice of Retirement Form

All these and many more make this scheme tasking and self inflicting punishment since someone who have put in his best in services as a youth will now begin to pass through all these stress.

Retirees who suppose to spend their time relaxing and caring for nothing will still start another serious job by carrying files like applicants going through series of interviews and scrutiny for jobs. Many of them have died in the process; this is unacceptable to me.

Now the time value of money is not considered, 10kobo saved today is worth 1kobo in 2years time, so I think it is better to invest my savings in a right choice of investment while working. For example, if you invest in palm tree plantation; by the time you retire, they would have matured enough to start yielding on monthly basis… that will give more peace of mind.

Nothing is more confusing than when one does not even know what business to do in old age. Having spent all the years building empire for someone, if care is not taken, one can end up not knowing what to do even with the pension. For me this is awkward.

It is not easy building business from scratch unless is an inherited business therefore I need to start on time to build my business empire so I can learn from the ups and down of the business. In that case, the money you will give to me tomorrow cannot freak me. Why not today?

As an entrepreneur every minute, time and money count…. Let’s have your opinions below…

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