The National Pension Commission has approved N13.21bn lump sum payments to annuity retirees in the first quarter of 2022.
This is according to data obtained from the commission’s quarterly report on ‘Retiree life annuity’.
It stated that, “The commission granted approval to 3,264 retirees under the retiree life annuity during the quarter under review. A total lump sum of N13.21bn was approved for payment to the retirees, while the sum of N22.69bn was approved for payment to 14 retiree life annuity providers as premium in return for total monthly/quarterly annuities of N231.93m.”
The Managing Director, Heirs Life Assurance, Niyi Onifade, said annuity plan paid retirees a steady amount, monthly or quarterly as long as the annuitant lived.
This way, he said, the individual was assured of a financially-secured future even during retirement.
Speaking on the company’s annuity plan, he said, “Pensioners have every reason to live life confidently as the annuity plan takes care of the worries of retirement, specifically, the uncertainty of the future. At Heirs Life, we continue to address the specific needs of different audience segments in line with our mission to make insurance accessible to everyone.”
The Managing Director/ Chief Executive Officer, Great Nigeria Insurance Plc, Mrs Cecilia Osipitan, explained that life annuity was a stream of periodic payments that commenced at a specified date, which would either be at the normal retirement age or happen at 50 in the case of early retirement.
The payment, she said, could either be monthly or quarterly depending on the retiree’s preference. According to her, the benefits included the continuous flow of regular income for the retiree, insulation from the risks associated with the investment of lump sum benefits, structured management of resources and the transference of the risk of diminution in assets and possible failure of investments of retirees to insurance companies which were better equipped to manage such risks.
She said, “Insurance remains the most reliable bedrock of our existence, and cultivating the culture of insurance can never be over emphasised. There is a need to call for a paradigm shift through effective sensitisation of the insuring public as it is very important to imbibe the culture of getting appropriate insurance cover to protect our assets and lives in case of any eventuality.”