AIICO Pension Managers Limited has introduced an initiative called ‘Gift a Pension’ built around the Micro Pension Plan.
The firm said the initiative sought to promote inclusive growth in the pension industry by allowing individuals in the informal sector have access to open Retirement Savings Accounts which were hitherto an exclusive preserve of the formal sector of the economy by design.
At the launch of the initiative in Lagos, the Managing Director AIICO Pension, Mr Eguarekhide Longe, explained that although the informal sector accounted for a huge chunk of Nigeria’s Gross Domestic Product, they were largely excluded from financial service offerings which necessitated the introduction of the Micro Pension Plan by the National Pension Commission in 2019.
He said this was with a view to promoting inclusive growth by allowing individuals in the informal sector access to open Retirement Savings Accounts.
The managing director explained that the Gift-a-Pension initiative was AIICO Pension’s own way of further promoting pension coverage in the informal sector of the economy.
He stated, “With the introduction of the Micro Pension Plan, there was a lot of optimism that it will be widely subscribed to but unfortunately, the rate of adoption has been lower than estimated and operators have had to re-assess their strategies for engaging the informal sector which is what has led to this initiative by AIICO Pension.”
The Head, Strategic Planning and Corporate Communications AIICO Pension, Mr Olubankole Ekundayo, said the initiative provided a platform to enable individuals with personal or domestic staff to fund their retirement savings account on their behalf under the micro pension plan, thereby giving them a gift that lasts a lifetime.
Staff that could fall under the domestic or personal staff categorisation include personal assistants, secretaries, security officers, cooks, maids, drivers, gardeners among others, he said.
He said, “We are launching the ‘Gift a Pension’ initiative which is designed around the micro pension plan because we believe that everyone deserves to have a pension and a good life after retirement, but there are some people who cannot afford it.
“So, Gift-a-Pension allows such people to get their pensions sponsored by other people who can afford it.”
This news was Culled from Punch. Click here to view more.
